Study On Corporation Financial Risk Appraisal System Based On Maximization Of Enterprise Value

Corporation financial risk, is a loss possibility in financial activities, various unexpected & uncontrolled factors make real revenue deviates prospective figure. Like: risk for raising fund, investment, income distribution, market and so on. Along with development of market economy, risk management has become a core in financial management functions. However, the corporation, as sum of multilateral contract relationships, how to select financial management objective, associating with many benefits groups, under certain period & circumstance, one party maybe a leading role. But from long term development view, benefits for all parties have to be balances well. So, while doing management, concepts of raising corporation value must be carried through, target in maximum corporation value. Current financial assessment system, administered by state or large shareholders onto managers' performance, obviously, could not meet it well. Existing enterprise financial risk evaluation methods are failed to consider the value of enterprises, only the appraisal methods of enterprises value are not given to the financial risk. This text is just on this basis, research relativity between financial risks and value upgrade, and then bring forward a set of financial risk assessment system, oriented by maximizing corporation value. By which, risk can be assessed in proper manner, at this rate, corporation not only could manage superior current margin, together with long term increase, but reduce risk down to bottom, finally, win sustainable development.This article was divided into three parts:The first part (chapter 1 & 2):Theory, introducing current situations about financial risk assessment and enterprise value assessment.The second part (chapter 3):Studying how to relate corporation value and financial risks, and work out a model.The third part (chapter 4 & 5): Against problems, current systems have, figure out financial risk assessment index and means, analyzing financial risks from profit level, venture prevention, capital management, development status, and cash acquisition, 5 aspects, and implement all-round appraisal on corporation's financial status by the mean of factor analysis, in the tag, summarize innovations & questions to be improved and solved of this paper.