Research On Financing Risk Prevention Of CQDZ Company

Enterprise financing risks,in broad terms,are those can pose uncertain impact on future financing activities due to current operating conditions,financing behaviors and fund management methods of enterprises.There are two kinds of risks: one is the risk of limited future financing methods and capital as the company cannot obtain sufficient income and lacks debt repayment capacity and funds;the other is the risk of restricted financing channels and rising financial cost due to some behaviors that damage the interest of company in financing and fund management.All these risks can pose a negative impact on the development of company,therefore it is necessary for companies to identify and evaluate the broad financing risks and take measures to prevent their increase,so as to ensure the smooth financing and healthy development of the company.This paper selects CQDZ company,a leading enterprise in the consumer electronics industry as the case to study its financing risk prevention,because the rapid development,fast product renewal and high R&D investment of electronic information industry determine the strong financing demand of these enterprises.The paper is organized as follows.Firstly,it puts forward the research purpose and significance of the study,overviews and analyzes attempts that have been made at home and abroad.Secondly,it introduces the current financing situation and environment of CQDZ company,and examines its financing risk factors from the perspective of financing environment change risk,potential operation risk and financing repayment risk.Thirdly,an empirical method is adopted to evaluate the financing risks of the company.Finally the paper gives some suggestions to prevent the financing risks.It is found that the prominent features of CQDZ company’s financing are relatively high proportion of short-term loans and single financing channel.The company’s potential financing is affected by the risk of financing environment change,financing management,convertible bond financing,financing guarantee and financing repayment.Its financing risk prevention capacity is at the lower middle level in the same industry,and the financing risk is on the rise every year.Therefore,there is a need for the company to enhance the awareness of financing risk prevention,broaden financing channels,strengthen cash management,revitalize the stock assets,review and supervise the insured enterprises,and prevent the risk of changes in the financing environment.This study on the risk prevention of the leading consumer electronics enterprise CQDZ,can help the enterprise identify and prevent future financing risks.Besides,this paper also hopes to offer a reference for the financing risk prevention of other consumer electronics companies in China.