Research On Financial Risk Control Of Private-owned Enterprise Group

Enterprise group is an important form of modern economic organization. Especially in the economy market,the development of enterprise group not only has an influence on the benefit of itself but also on the economic strength and the international competitive of a country or region.After reform and opening up,the private enterprise groups as a new dynamic force active in China's market economic arena,has made the tremendous contributions to the development of China's national economy.We are supposed to notice that present successful private-owned companies are just based on the thousands of frustrated and bankrupted.Looking at financial Control of China's Private enterprise group,there are always related party transactions,lacking of equity,investment diversification,excessive security and large shareholders taking up capitals.Those induced to blindly funding strategy,investment in the wrong direction, inadequate financing capacity,which eventually led to enterprise funds strand breaks and insolvency.With increasing economical reform and market competition,many entrepreneurs are aware of the principle position of financial management in one private-owned company.In principle of combination theory with practice,the paper primarily analyzed financial risk problem and reasons for private-owned enterprise group,and contributed a system of controlling private-owned enterprise group risk.The system put the max cash flow as the control aim,the operating cash flow,financing cash flow,the investing cash flow and other cash flow as the control object.We put forward five controlling methods for the existence of financial risk of private-owned enterprise group:budget control, fund-raising risk control,investing risk control,security control and capitals control. Finally we judged the result of financial risk control,whether the predicting result of the cash flow was true,and control of monitoring and corrective target.We chose the representative private-owned enterprise group-De Long,stated the development,analyzed the operating cash flow,financing cash flow,the investing cash flow and other cash flow and got the experience and inspiration.In view of inter community of financial problems reflected by the case,this paper has a value of reference to private-owned enterprise group that are struggling or will meet financial crisises.