The Research On M&A Financial Risk Of Securities Company In China

Throughout China’s securities industry for nearly30years, the results are obvious andexposed shortcomings are obvious. They have many problems,including too small, weakanti-risk ability, low-profit, single business model, and "relying" nature and so on. One of themost significant drawback is the large number of sectors and individual brokers small scale.According to foreign investment bank development experience, we can learn that M&Aamong securities companies to obtain the size of the expansion will be inevitable, andexcellent brokerage is the protagonist.In the securities industry, M&A activities will produce kinds of risk, one of the mostsignificant risk is the financial risks, so the corresponding precautions are essential.The paper combines qualitative analysis with quantitative analysis. Firstly,using qualitativeanalysis methods describe the status of China’s securities industry,point out the source ofM&A financial risks and build M&A financial risk evaluation system; Secondly, using AHPand Fuzzy Evaluation Quantitative analyze the securities industry M&A financial risks andobtain comprehensive evaluation.This paper firstly defines M&A, risk, M&A financial risks, describes the types and causes ofM&A financial risk and points out that this paper studying on the non-systemic financialrisks(pricing risk, financing risks, debt risk and financial integration risks); Secondly, usingindustry concentration analysis and SWOT analysis methods describes the current situationof China’s securities industry and points out that M&A between brokerages in our country isthe only way for an inevitable trend, using Boston Matrix Method proves that excellentbrokerage is the protagonist.Thirdly, the paper Comprehensively expounds China’s securitiesindustry, including the development process of M&A and their particular motives,describesthe securities industry financial risk management and on the basis,enter the securitiesindustry M&A financial risks.Fourthly, according to the characteristics of the securitiesindustry, the paper establishes the M&A financial risk evaluation index system and analyzesthe financial risk of M&A by the ways of using the Delphi method, fuzzy set theory andAHP, combining with the specific case;Finally, based on the preceding analysis, this paperproposes specific preventive measure.