Research On Corporate Risks And Its Prevention And Control In The Process Of Industry-Finance Integration Of Enterprise Groups Take Fosun Group As An Example

The combination of industry and finance refers to the combination of industry and finance at the intrinsic level by means of mutual equity participation and holding,which in China is mainly reflected in the inflow of industrial capital into the financial sector in a one-way manner,and is a trend presented by industrial capital in order to achieve diversified development in operation.In recent years,banks,securities and other institutions in the financial sector have successively seen the participation and holding of industrial and commercial enterprises,which also shows that more enterprises have chosen the strategy of combining industry and finance in order to expand their own scale.However,the development of the industry-financing combination strategy in China has only just begun,and although some enterprises have achieved good results through the use of the industry-financing combination,there are also enterprises that have suffered disastrous failures during the promotion of the industry-financing combination.In terms of the combination of industry and finance,there have been negative cases such as the outbreak of the Delongxi crisis and the divestiture of GE’s financial business,which have prompted more enterprises to pay attention to the risks it may cause.Therefore,enterprises should not only see the beneficial effects of the combination of industry and finance,but also identify the possible risks,and take reasonable measures to effectively prevent and control the risks,and pay extra attention to the financial risks,so as to ensure the smooth promotion of the combination of industry and finance and achieve sustainable development.In this paper,Fosun Group is chosen as a case study to analyse the enterprise risks and their prevention and control in the integration of industry and finance of enterprise groups.Firstly,it provides a comprehensive overview of the main motivations and forms used by Fosun Group to carry out the integration of industry and finance,and on this basis,it makes a comprehensive analysis of the corporate risks arising from the integration of industry and finance and their causes,mainly from three perspectives: corporate financing,investment and business activities.In order to further explore the mechanism,this paper conducts a comprehensive assessment of the corporate risks arising from the combination of production and financing of Fosun Group from different perspectives,including traditional financial indicators and cash flow indicators.The paper finds that during the development of the Fosun Group’s industry-financing combination,the combination of industry and finance has led to the expansion of the overall financing scale of the enterprise through financing activities and a certain mismatch in the capital structure of financing,which in turn has led to greater debt servicing risks.Through changes in operating activities that affect the ability of enterprises in terms of profitability and operations,which in turn increases the level of operating risk.Finally,based on the identification and analysis of enterprise risks in the combination of industry and finance,this paper puts forward the following recommendations for risk prevention and control: first,optimize the financing structure and broaden the financing channels;second,avoid excessive investment and improve investment efficiency;third,focus on core business and strengthen strategic synergy.The innovation of this paper is that it is different from the previous studies on the motivation and performance of the industry-financing combination,and focuses more on the identification and prevention and control of risks in the industry-financing combination.