Based On The Life Cycle Theory Of Color TV Enterprises Financial Risk Management

As the most typical of China’s economic development, the most thorough market, most competitive industries, China’s color TV industry plays a very important role in the development of China’s national economy and the improvement of quality of life of people. After the global financial crisis in 2008, comprehensive development of the market in 2009, a new upsurge of innovation and change in 2010, China’s color TV industry is to head gesture towards the country’s impressive record of the " Twelve Five "new era. New era brings more opportunities to us and we can also face more severe challenges. In the complex economic environment, Whether China’s color TV industry can effectively seize opportunities, meet challenges, adjust to changes in the environment strategy, avoid risks, and ultimately extend the life of business enterprise value maximization will be the new mission we face.Therefore, the strengthening theory, a rich theory of culture, understanding the new business development from the perspective, with the effective way to avoid the business risk is very important. In a sense, enterprise can be seems a living organism, this organism has always been run along a certain path, and different enterprises running track just sketched out the life cycle of different enterprises, thousands of tracks in a kind of behind the laws of necessity, that is corporate life cycle theory. The use of life cycle theory to study and discuss business developments, identify business development stage is not without benefit.At the same time, financial risk management as a new fire management platform has been developed as the business operating environment and financial environment of great change. Enterprises must adapt to the environment and the use of the environment in order to survive and develop, so to look at the company’s financial behavior from the perspective of financial risk management, to establish the financial risk early warning mechanism Is the product of the inevitable outcome of market competition and has important theoretical and practical significance on any business. Throughout the life cycle theory and the theory of financial risk management on existing research results, we can find that these studies are still mainly concentrated in the traditional financial management level, relatively independent with little blending, studies combined the two are few. Based on this situation, this article will proposes strategy from the life cycle theory and overall financial risk avoidance at all stages of the life cycle of financial risk aversion strategies, to effectively avoid and reduce the risk of loss to provide a reliable basis for enterprises.1, The objective of studyEnterprises has more obvious characteristics and external environmental in their various stages of life cycle of business growth, and embodied in the life cycle of financial risk characteristics consistently, study accordingly targeted becomes valuable.Firstly, this article will sort out conclusions on the existing literature, master the theory of meaning and understanding the most current research results and the latest developments, understand the basis for division of the life cycle, understanding what financial risk characteristics of business and the corresponding financial risk management strategies, that can be a solid rationale for the backing.Secondly, understand the latest developments of China’s color TV industry, Characteristics of development of the industry, including market characteristics, technical characteristics and financial characteristics, that will be launched on the case below, a deeper understanding of the background.Finally, the depth of analysis of the two companies, combining and practicing the two theories of enterprise life cycle and financial risk management, analyze the financial risk characteristics of each life stage, make appropriate financial risk management strategies, help China’s color TV industry to strengthen its financial risk management, effective control of risks, avoid risks, then can achieve the goal of maximizing corporate value.2, The main contentBased on the above background and research purposes, the article started from the seven sections discuss:ChapterⅠ--Introduction. In this chapter, the article introduces the research background, purpose, overview of research ideas and research methods paper.ChapterⅡ--Literature Review. In this chapter, respectively, on the life cycle of current theory and the theory of financial risk management literature review conducted to understand the latest research, and finally a simple literature review, this study derived the starting point and breakthrough.ChapterⅢ--Basic theory. Arranging this part of the corporate life cycle theory and the theory of corporate financial risk based theory in detail. Through these two chapters a detailed description of the theory for the case studies backed by a solid rationale.ChapterⅣ-Development of China’s color TV industry. In this chapter through the development process of China’s color TV industry, the industry market characteristics, technical characteristics and financial characteristics of the analysis and discussion, the paper is to study the basic situation of the color TV industry to be a statement of case that will be launched following discussions.ChapterⅤ-Hisense Company’s financial risk management. In the first chapter the background of Hisense Company brief introduction, the life cycle of Hisense is divided into three stages, respectively, characteristics and financial characteristics are summarized, then focus on Hisense of Growth and maturity of the financial risk analysis, respectively, from funding for each stage of risk management, investment risk management and income distribution analysis of three aspects of risk management discussion of the three stages are given financial risk management Strategy.ChapterⅥ--Changhong financial risk management. In the first chapter the background of the company, Changhong, a brief introduction, Changhong is divided into five stages of the life cycle and focus on selected Changhong recession and growing again in two stages analysis, Each stage, from the financing risk management, investment analysis and management and income distribution analysis of three aspects of risk management on the basis of discussion, with particular attention to the recovery of funds on the risk of Changhong, recession of the financial risk management strategies and policy recommendations.ChapterⅧ--Conclusions and disadvantages are given in this chapter of the life cycle of China’s color TV industry, financial risk management strategies and comprehensive strategy proposed in this paper based on insufficient research and future research directions.3,The main contributionAccess to a large number of articles in the literature and discussed in depth investigation, based on the use of effective research methods, from a new perspective on China’s color TV industry to study the life cycle, the following conclusions, in a bid for the healthy development of China’s color TV industry has made Contribution.1. It analyzes China’s color TV industry and financial risk management situation from the perspective of financial risk management theory, that form in the current economic impact of China’s color TV industry is financing the biggest risk, investment risk, risks and benefits of the recovery of funds allocation of risk, And in various stages of business impact of these risks is not the same, for example, start-up based on a business risk, financial risk, supplemented; growing more of a financial risk, financial risk reflected turned around financing risk More obvious and more.2. The life cycle and financial risk management are combined in this article, and Hisense Electric Co., Ltd. and Changhong Electric Co., Ltd. for in-depth case analysis. Articles from Hisense sales targets and indicators of cash flow starting the life cycle into Hisense start, growth and maturity of three stages, and analyzed the growth stage and maturity of the financial risk and risk management strategies; the rainbow life Cycle is divided into start-up, growth, maturity, decline and change five times, the focus of a recession and the transformation of the financial risk and management strategies.3. After the key sub-cycle study of the most representative of China’s color TV industry, Changhong, Hisense and key sub-cycle study, presented for the entire industry has universal significance of the financial risk management strategies and comprehensive strategy to this article for the TV companies in the life of Effective identification of financial risks, to avoid financial risks, reduce the risk of losses provides a reliable basis; to extend the enterprise life, the life recycling enterprise, the enterprise value maximization for their constructive guidance; for the rich content of financial theory, promote China Modest financial contribution to the development of practice.