Research On Financial Risk Management Strategy Of Letv Internet

Against the backdrop of slowing domestic and foreign economic growth and weak growth in traditional industries,the growth of the emerging Internet industry is particularly rapid.Especially during the past "Twelfth Five-Year Plan" and the upcoming "Thirteenth Five-Year Plan" period,the rapid development of the Internet industry has brought new impetus and potential to China's economic growth.With the rapid development of the Internet industry,competition pressure among enterprises in the industry is increasing.To steadily develop under the complex economic environment and huge market pressure,it is necessary to strengthen the management and prevention of financial risks.In 2010,LeTV became the first listed video website company in the world,and its “platform + content + terminal + application” whole industry chain ecological development model showed a good development prospect for investors.However,in November 2016,LeTV.com suffered a financial crisis due to a break in the capital chain,which caused its upstream suppliers to fail to receive payment,and caused a financial crisis due to the lack of their own management.In addition,after the financial crisis broke out,they did not take more effective stop loss measures in a timely manner.Paralyzed by its highly respected and proud vertical ecosystem,it has suspended stock listing since May 13,2019.Based on the theoretical research results and practical exploration experience of financial risk management at home and abroad,this article analyzes the financial operation of LeTV from the aspects of debt repayment ability,operating ability,profitability and development ability,and from financing risk and liquidity risk.,Capital recovery risk,cost risk,M & A risk,etc.,analyze the main financial risks faced by LeTV.Applying the leverage effect and Z-Score model to explore the extent of LeTV 's financial risks and reveal the causes of its financial risks,and then proposed the corresponding Countermeasures.The main conclusions are:(1)from2015 to 2018,LeTV was always in a state of high asset-liability ratio and low equity ratio,the comprehensive use efficiency of current assets was too low,and profitability and development ability continued to decline rapidly;(2)LeTV The main financial risks faced by Wang.com include financing risk,liquidity risk,capital recovery risk,cost risk,and merger and acquisition risk.The main causes are LeTV.com's singlefinancing channel,excessive cash payment,improper ecological model,and weak risk management;(3)There are three main reasons for the outbreak of the financial crisis of LeTV.One is the hollowing out of large shareholders through the operation of the capital market,especially the large shareholders' pledge of large amounts of equity and high-value reductions to cash out.The cost of liabilities;the third is excessive strategic expansion;(4)LeTV is in a financial crisis and passively adjusts equity,adjusts the strategic layout and rectifies related party transactions,handles related party debt receivables,and reduces the funding chain in the process of continuous deterioration Expansion speed,etc.,but did not fundamentally resolve the financial crisis.In order to get out of the predicament and reverse the crisis,LeTV.com should focus on expanding enterprise channels,differentiating and implementing risk prevention and control,improving financial management systems,and strengthening risk management departments to maintain LeTV's sustainable and healthy development.