Research On Financial Risk Under The Diversified Expansion

In recent years,more and more companies have begun to adopt a diversified strategy in order to occupy more markets and develop new markets,and expand their use into new fields by integrating existing idle resources to improve the core of enterprises in the market Competitiveness.In the process of strategic transformation of enterprises,most enterprises choose a diversified development strategy to expand their business scope and scale.Although some companies have succeeded on the path of diversification,it is undeniable that there are still many companies that fail to diversify and expand their businesses.The Chuying Agro-Pastoral Group used to be the "first pig raising stock" of the A-share.The market value was as high as 30 billion yuan in 2015.It is the best in the pig breeding industry.With potential serious financial risks,until August 19,2019,the Shenzhen Stock Exchange announced the termination of the listing announcement that the Chuying Agro-Pastoral Group had reached the end of the capital journey,and the Chuying Agro-Pastoral Group faced delisting.The Chuying Agro-Pastoral Group are not typical of the failure of diversification and expansion.Therefore,this article takes the Chuying Agro-Pastoral Group as a case study object to carry out in-depth research on the financial risk of the enterprise under the diversified management strategy.This article first sorts out and analyzes the existing theories about diversification and financial risk on the basis of reviewing relevant literature at home and abroad,and then further studies this by case analysis.In the case section,the article first reviewed the history of diversification and expansion of young eagle agriculture and animal husbandry,and analyzed its current financial situation and dilemma,combined with the financial data of young eagle agriculture and animal husbandry since its listing since its listing.Identified the risks,and selected a comparative analysis with the other three companies in the same agricultural industry.From this,I discovered a series of financial risk problems caused by the diversified expansion strategy of the young eagle agriculture and animal husbandry.Analysis,this article puts forward the financial risk control measures under diversification and expansion,and finally summarizes and prospects of the case study,hoping that the research in this article can consider the rationality of the company 's thinking about the diversification strategy and the company 's diversification expansion The following financial risk issues are helpful,and at the same time provide a reference for enterprises to effectively identify and control financial risks in the process of diversification and expansion.