Research On Financial Risk Under The Diversification Strategy Of Film And Television Enterprises

At present,with the development of China’s economic market,market opportunities are increasing.For internal and external reasons such as dispersing financial risks,improving corporate profitability,and adapting to government policy changes,more and more enterprises begin to implement "diversification strategy".However,if the enterprise blindly implement diversification strategy,diversification strategy process too fast,the lack of the recognition of enterprise financial risk,early warning and assessment,control,such not only can’t through diversification strategy to achieve the expected goals,even may drag on enterprise’s core business,bring greater financial risk.In recent years,the state attaches more importance to the cultural film and television industry,and has issued a series of favorable policies.Many film and television enterprises begin to carry out diversified strategic layout.As one of the leaders in the film and television industry,Huayi Brothers has also started the expansion road from single operation to integration of film and television industry chain and then to "de-cinema" with its diversification strategy,and finally formed four business segments of film and television entertainment,brand authorization and live entertainment,Internet entertainment and industrial investment.However,in the process of implementing the diversification strategy,Huayi Brothers did not fully identify and evaluate the financial risks of the enterprise,and the related management was not perfect.As a result,it experienced the first loss since it was listed in 2018,and then the capital chain was broken,and the financial risks brought by the diversification strategy became prominent.In the film and television industry,many enterprises tend to adopt diversification strategy when they reach a certain level of development,but ignore its impact on the financial risk of the enterprise.Therefore,the study of Huayi Brothers financial risk under the diversification strategy has a certain representativeness and reference significance.Starting from the literature,this paper summarizes the domestic and foreign literature such as diversification strategy,financial risk and the relationship between diversification strategy and financial risk,so as to build a reasonable analysis framework for the following case study.Then introduce the concepts and related theories to be used in this paper.After that,case analysis is adopted to understand the degree of diversification and the layout of diversification strategy of Huayi Brothers by using the diversification degree measurement model.On this basis,the first analysis of Huayi Brothers diversification strategy under the financial characteristics;Secondly,combined with comparative analysis and financial index method,it identifies the financial risks of Huayi Brothers under the diversification strategy and the different effects of different stages of diversification strategy on the financial risks,and analyzes the causes of the risks.Furthermore,the F score financial risk early warning evaluation model is used to evaluate the overall financial risk of Huayi Brothers under the diversified strategy,and analyze the key points affecting the overall risk of the enterprise.Finally,according to the above identification and early warning evaluation,specific suggestions are put forward for financial risk control under Huayi Brothers’ diversified strategy from the aspects of investment,financing,capital recovery and cash flow.