Research On The Identification And Control Of Financial Risks Of Private Enterprises’ Short-term Loans And Long-term Investments

Short-term loan and long-term investment are a very dangerous financial operation mode.When the enterprise has strong operating ability and the external market is booming,it can still maintain sufficient cash flow,and can use various channels to raise funds to fill the "old debt".Once the enterprise’s profitability decreases or the external environment changes,the enterprise’s cash flow is limited,resulting in difficulties in capital turnover,It will cause private enterprises to immediately fall into financial crisis.Therefore,private enterprises need to be very careful when choosing short-term loans and long-term investments.They should identify and control financial risks and always control financial risks within a reasonable range before allowing short-term funds to be invested in long-term income projects,so as to steadily promote the sustainable development of private enterprises.This thesis studies the identification and control of financial risk of short-term loan and long-term investment of private enterprises.Through the use of risk management theory,capital term matching theory and pecking order financing theory and other relevant theoretical research,it uses the combination of annual report analysis,hierarchical analysis and fuzzy comprehensive evaluation to identify the types of financial risk of short-term loan and long-term investment of Oriental Garden,and chooses to build a financial risk evaluation model,So as to explore the financial risk response measures for the short term loan and long term investment of Oriental Garden.Through the research of this thesis,we find that the formation of short-term loans in Oriental Garden is related to the external capital environment of enterprise operation,the advantages of short-term loans,and the relationship between commercial banks and enterprises.In 2017-2019,there was a phenomenon of short-term loan and long-term investment in Oriental Gardens,and the main investment projects were concentrated in PPP projects,including water environment comprehensive treatment,industrial hazardous waste disposal,whole-area tourism and other industries.The formation of short term loan and long term investment in Oriental Gardens is affected by such factors as enterprise financing costs,financing constraints,debt crisis,investment projects,etc;At present,the financial risks of the short-term loan and long-term investment of Oriental Garden are mainly manifested in three aspects: the first is the financing risk,including the risk of capital liabilities,the risk of equity changes,the risk of debt maturity structure,and the risk of financial leverage effect;The second is investment risk,including investment decision risk,cash flow risk of investment activities and investment income risk;The third is operational risk,including credit risk,cash flow risk of operating activities,capital turnover risk and bankruptcy risk.The weight of the financial risk evaluation index of the short-term loan and long-term investment of Oriental Garden is determined by the analytic hierarchy process,reflecting the importance of investment risk and financing risk control.The fuzzy comprehensive evaluation method is used to evaluate the financial risk of short-term loan and long-term investment,and the final evaluation grade is "high",indicating that the financial risk of short-term loan and long-term investment of Oriental Garden is high.In order to control financial risks,enterprises,governments and financial institutions should strengthen control to reduce the incidence of financial risks and the economic and social losses caused.