Research On The Financial Risk And Control Of Company C Under The Strategy Of Financial-industrial Integration

Financial-Industrial integration refers to the internal combination between the industrial sector and the financial sector by means of mutual equity participation,holding,personnel assignment,etc.In China,it is mainly reflected in the one-way penetration of industrial capital into the financial sector.It is a trend for industrial capital to pursue diversified management and improve capital operation level.In recent years,many enterprises appear in the behind of banks,securities,funds and other financial institutions.Financial-Industrial integration has become a strategic choice for more and more enterprises.However,the financial-industrial integration in China is still in the preliminary stage,although some enterprises have achieved positive results,there are also some enterprises failed in the way of financial-industrial integration.With the occurrence of a series of failure cases such as Delong and GE group,more attentions have been paid to the risks associated with the financial-industrial integration.Therefore,enterprises should not only pay attention to the benefits of the financial-industrial integration,but also establish risk awareness,prevent and control the risks,especially financial risks,to ensure the sustainable development of the financial-industrial integration.This paper takes company C as an example to study the financial risk of financial-industrial integration.On the basis of analyzing and combing the motivations and main forms of financial-industrial integration in company C,we identify the financial risk types.They mainly include: financing risk caused by excessive liabilities,investment risk caused by blind investment,operational risk caused by the non integration of industrial capital and financial capital and liquidity risk.Then this paper comprehensively evaluates the financial risk of company C from the perspectives of traditional financial indicators,cash flow indicators and z-score model.The results show that the implementation of financial-industrial integration increased the financial risk of enterprises.To further explore the formation mechanism of financial risk in company C under the strategy of financial-industrial integration,this paper analyzes the paths that how financial-industrial integration caused the company C’s financial risk,based on its influence on enterprise financing,investing and operating activities.It shows that on the one hand,the financial-industrial integration expanded the scale of enterprise debt financing and shortened the financing term structure,thus increasing the financial leverage and short-term debt repayment pressure;On the other hand,the financial-industrial integration promoted excessive investment,exacerbated the mismatch of investment and financing period,aggravated the volatility of investment returns,thus increasing the investment risk and the pressure of capital chain.In addition,the financial-industrial integration not only weakened the company’s main business and the group’s overall operating capacity,but also failed to realize the synergy between industrial capital and financial capital,thus deepening the company’s operating risks and liquidity difficulties.Finally,this paper proposes the following financial risk control suggestions under the strategy of financial-industrial integration based on the analysis of risk assessment and impact path: Firstly,developing financial-industrial integration scientifically and establishing risk consciousness;Secondly,adjusting the financing structure under the financial-industrial integration strategy and expanding diversified financing channels;Thirdly,reasonably arranging the investment activities of enterprises under the strategy of financial-industrial integration;Fourthly,making the financial-industrial integration play a supporting role to company’s business activities;Fifthly,strengthening internal risk control and external risk supervision.This paper has certain reference significance for enterprises to formulate the industry-finance integration strategy scientifically and control the financial risks from all aspects.