Research On The Financial Risk Evaluation Of A Airlines Group Under The Diversified Management Strategy

In today’s economic globalization and rapid changes in the economic environment,more and more enterprises are adopting diversification strategies to expand the scale of corporate assets and achieve cross-industry development to avoid risks.However,diversification strategy is a double-edged sword,which is greatly influenced by the market economic environment.In 2020,under the influence of the epidemic,China’s real economy was hit hard,and major group companies had problems such as interruption of capital chain,delayed payment of debts and corporate bankruptcy due to the early strategic expansion.How to effectively implement the diversification strategy and how to avoid the financial risks brought by the diversification strategy is crucial to the future development of the group companies.Since the implementation of the diversification strategy,Airline Group A has rapidly expanded its economic scale,and most of the diversified industries of Airline Group A are spun off and listed,with clear business segments.This paper selects Airline Group A as the case study object,and puts forward relevant suggestions through the study of the financial risks of Airline Group A under the diversification strategy.This paper firstly researches the literature on diversified business strategy and explains the related concepts and theories;secondly,it introduces the implementation of A aviation group’s diversified business strategy,analyzes the motivation of the group’s strategy implementation and introduces the group’s diversified industrial layout;then it constructs the influence mechanism of diversified business strategy on the group’s financial risk,and analyzes the comparison between each business segment of A aviation group and the industry average through the event study and The preliminary judgment of the financial risk of Airline Group A under the diversification strategy was made,and the TOPSIS-entropy weight method was applied to construct the overall financial risk evaluation of the listed companies of Airline Group A.Finally,the suggestions for enterprises to cope with the financial risk in the process of implementing the diversification strategy were summarized,and relevant suggestions were made for the subsequent development of Airline Group A.The study shows that the implementation of the diversification strategy of Airline A Group has improved the financing ability of the group,but the high financing leverage of the group under the diversification strategy has led to increasing financial risks,while the unrelated diversification strategy implemented by Airline A Group has reduced the core competitiveness of its main air transportation business and lowered the profitability of its main business.In the process of implementing the diversification strategy,the financial risk of the enterprise is also affected as the degree of diversification increases,and the possibility of the enterprise facing financial risk increases as the degree of unrelated diversification expands.