A Study On Financial Risk Control Of Internet Video Company Based On Diversified Business Across Borders

Since 2008,the number of cases involving copyright infringement has increased sharply,and the government has imposed stricter restrictions on Internet video industry.From 2010 to 2014,Baidu,Tencent and Alibaba successively entered the Internet video industry with abundant capital,which increases peer pressure of other Internet video companies and causes them expand in a diversified strategy.However,the number of financial crisis case that caused by the disorderly diversification of expansion that leads to the weakness in the later period and the capital chain fracture has increased frequenctly.Le TV Group that started with Internet video service,failed in its attempt to create seven major ecologies,including content,big screen,sports,mobile phone,automobile,financial Internet and cloud ecology.Due to problems in its capital chain in the later period,Le TV Group has experienced that suppliers frequently came to collect their debts,and the debt reached more than 10 billion yuan in a few years.Under the pressure of copyright and industry competition,UUsee.com also sought for development through the implementation of the diversified strategy of "cross-media +multi-terminal + wide coverage",but little positive effect has been achieved.Storm Group imitated Le TV Group ecology strategy and entered many crossover fields such as VR,TV,film,live broadcasting,sports,etc.However,the financing speed at the later stage could not match the capital demand of expansion,resulting in the intensification of financial risks.Therefore,how to how to control the possible financial risk in the process of implementing the diversification strategy is worth discussing.Based on this,this thesis mainly launches from two research purposes:Firstly,it explores the motivation and the measurement of the degree of implementation of cross-border diversification of Internet video companies through Storm Group case.In particular,the implementation motivation is mainly analyzed from the external and internal aspects.The external motivation is summarized from the background of the current situation of the Internt video industry,while the internal motivation is summarized from the positive synergistic effect and negative profiting of managers.There are various methods to measure the degree of diversification.In this thesis,operating unit coefficient method,Herfindal index and general strategic direction of the company are adopted to measure the degree.Secondly,from the perspective of cross-border diversification,the framework of the company's financial risk control process is discussed.The thesis mainly three link analysis,which includes causes analysis,the measurement and control measures.Through the interpretation of the different stages of diversification,the thesis analyzes the risk causes after the excessive expansion of Storm Group,and a comprehensive measure by using the model which combines with the causes of financial risk is introduced.Finally,the thesis puts forward positive preventive measures based on different diversified implementation stage.The main contents of this thesis are as follows:The first chapter is the introduction,which mainly introduces the background and purpose of this thesis,as well as the expected contribution.The second chapter is literature review,which mainly reviews the related concepts,motivation and measurement of diversification,the relationship between diversification and financial risk,and financial risk control.The third chapter is theoretical analysis.The theoretical framework is constructed through defining the concept of Internet video company,diversified operation and financial risk,and sorting out the main theoretical basis.The fourth chapter is the Storm Group case introduction.After the background being introduced,the thesis analyzes the motivation and measurement of diversified strategy,and sorts out the specific diversification expansion process of Storm Group.The fifth chapter analyzes the causes of financial risk of the Storm Group based on the diversification perspective and measure it through different models comprehensively.First,the financial situation before and after diversification operation to reflect the growth of financial risk,then analyzes the causes of financial risk,and uses the model to measure the financial risk synthetically.The sixth chapter analyzes financial risk control issues and proposes preventive measures in the diversified perspective.The seventh chapter is the conclusion,which shows the conclusion of this thesis.The main contributions of this thesis are as follows:As for the content of research,since the Internet video industry is an emerging industry,and cross-border diversification has only taken on a mainstream trend in recent years,there are few relevant researches and most of them are the empirical analysis.Ihis thesis hopes to use the case study to make some supplement to the research on the financial risk control of cross-border diversified operation of Internet video companies.As for the research methods,most research on financial risk control focuses on the cause analysis,comprehensive measurement of financial risk and preventive measures.In this thesis,the framework of financial risk control is adjusted to a certain extent.In terms of cause analysis,through the interpretation of different stages and financial performance,the risk degree after diversification expansion is explained to a certain extent.In terms of comprehensive measurement,the financial risk measurement is measured with the traditional financial and cash flow indicator models,and the results are compared to study whether asset utilization effect or cash flow ability can be better used for financial risk warning under the background of diversified expansion.In the aspect of preventive measures,the subsection identification method is used to put forward positive preventive measures.