Research On Financial Risk Of CIMC Group From The Perspective Of Internal Capital Market

With the rapid development of China's market economy and the reform and opening up,enterprise groups have become an increasingly important form of organization for Chinese enterprises.More and more enterprises are developing towards the direction of conglomeration,and the internal capital market has emerged.Many studies have shown that the internal capital market of a company has more advantages than the external capital market,such as information capital,regulatory interest and incentive interest,which to some extent alleviates the financing constraint of the company.At the same time,the group headquarters unique residual control function can centralized management of funds,improve the efficiency of resource allocation.However,due to problems such as overinvestment,agency cost and shareholder equity transfer,the internal capital market is functionally alienated and inefficient.In addition,the excessive focus on mutual guarantee,mortgage and other internal capital market operation inevitably leads to the increase of the company's financial leverage,thus increasing the company's financial risk.Therefore,based on China's economic environment and the theoretical framework of internal capital market research,this paper takes CIMC Group as the research object,introduces the construction process and operation mode of its internal capital market,and conducts identification,evaluation and control research on the financial risks caused by construction and operation behavior.It is found that diversified mergers and acquisitions,loans and guarantees in the operation of CIMC's internal capital market increase the group's financial risks.The financial risk of CIMC group is identified from four aspects of debt repayment risk,profit risk,operational risk and development risk by using financial statement analysis method.Based on the results of risk identification,the financial risk evaluation system is constructed and the financial risk of CIMC group is evaluated from 2015 to 2019.The comprehensive evaluation results show that the operation behavior of the internal capital market of CIMC group leads to the increase of financial risks,and the group's operating conditions have great fluctuations.The financial risk evaluation results are consistent with the actual situation of the group.It is concluded from the analysis that the causes of financial risks in the operation of CIMC's internal capital market are mainly the mistakes of merger and acquisition decisions and the pressure of debt repayment caused by the high leverage coefficient Meanwhile,profit fluctuations are generated in the diversification expansion process under the influence of the macro environment.Based on the analysis of causes,this paper proposes financial risk control measures from three aspects of financing,investment and enterprise development strategy,in order to provide reference for the internal capital market construction and financial risk management of groups and similar enterprises.