Financial Risk And Risk Control Of Iron And Steel Enterprises Under Environmental Uncertainty

With the development of countries all over the world,the fluctuation of domestic and international economy will change the market environment of enterprise operation and development,change the enterprise's expectation of operating income,affect the decision-making of enterprises,and the impact on cyclical enterprises is significant particularly.At the present stage,the growth of China's economic is slowing down.We should pay more attention to the quality of economic development and promote the optimization,transformation and upgrading of industrial structure.The macroeconomic environment is facing greater uncertainty.Based on the above realistic background,many scholars begin to pay attention to study the relationship between the macro environmental uncertainty and the micro behavior of enterprises,but so far,there are few researches on the relationship between the environmental uncertainty and the financial risk of enterprises,and few literatures introduce the irrational factors of enterprise managers into the research of enterprise financial activities.As a typical cyclical industry,iron and steel industry is exposed to financial risks such as excess production capacity and declining profits in the face of foreign economic fluctuations and domestic industrial structure upgrading.Based on the background of environmental uncertainty,combined with the current academic research and behavioral finance theory,this paper explores the impact of environmental uncertainty and managers' overconfidence on corporate financial risk.Firstly,considering background of environment uncertainty,this paper summarizes the related concepts of environmental uncertainty,managerial overconfidence and financial risk;secondly,combined with the resource dependence theory,behavioral finance theory,cybernetics,as well as the analysis of the sources of financial risk of China's steel listed enterprises,this paper constructs the research framework of financial risk of steel listed enterprises,and makes a conclusion Finally,select the data of steel industry listed companies in Shanghai and Shenzhen stock markets from2010 to 2019 for empirical analysis.This paper draws the following conclusions through empirical research:(1)managerial overconfidence will increase the financial risk of listed iron and steel enterprises;(2)environmental uncertainty has a positive impact on the financial risk of listed iron and steel enterprises;(3)environmental uncertainty does not have a significant regulatory role in the impact path of Managerial Overconfidence on financial risk;(4)The results show that degree of self-confidence and environmental uncertainty can promote financial risk in state-owned enterprises,but there is no significant relationship between them in non-state-owned enterprises;(5)in high-scale enterprises,managerial overconfidence can aggravate financial risk,while in low-scale enterprises,environmental uncertainty can significantly promote financial risk.According to the above conclusions,this paper obtains some enlightenment from the three aspects of risk control of iron and steel industry,internal response of iron and steel enterprises and enterprise managers.There are 11 figures,31 tables and 133 references in this paper.