The Research On Financial Risk Management Of Internet Enterprises

In recent years,Chinese enterprises are confronted with the new normality of slowing economic growth and competition in the industry will become even more intense.With the lack of growth in the traditional industries,the rapid development of the Internet industry has brought new growth points to the Chinese economy.The Internet industry in China is developing rapidly as a whole.The Internet companies are facing complex economic environments and fierce competitions.If they want to develop steadily in competitions,enterprises need to pay attention to the management of financial risks.Leshi Internet as an example of innovation in the business model of the Internet industry,has created a video website "charge + free" combinations,from which developed the ecological model of Leshi Internet and created a "platform + content +terminal + application" of the entire industry chain model.However,the financial crisis of Leshi that broke out in November 2016 caused the reputation and reputation of Leshi to drop rapidly and has not yet subsided.So this paper selects Leshi Internet as a case study.The existing researches mainly focus on the aspects of risk identification,risk measurement,risk assessment,risk control and so on.One or more aspects are selected to conduct in-depth researches,or based on the type of economic business to select a single business to analyze its financial risk.Little research has been done on the integration of financial risks.In addition,compared with the researches of financial risk management of traditional enterprises,researches of financial risk management of Internet companies lags behind and has not yet formed a theoretical system due to the short course of development.This paper starts with the Internet industry,discusses the methods and characteristics of Internet company's financial risk management,and do a case study on Leshi Internet.Based on the theory of financial risk management and internal control,this paper studies the financial risks and causes of Leshi Internet and analyzes the influence of financial crisis of Leshi on it.Based on the existing financial risk management system and defects in financial risk management,proposed suggestions for Leshi Internet to improve its financial risk management,and also look forward to the future development according to the new strategy of Leshi Internet.The findings of this paper are as follows:(1)The financial risks of Leshi Internet are subdivided into cash flow risk,debt repayment risk,financing risk,credit risk and cost risk;(2)The core reason of financial risk are its rapid expansion strategies and the massive transfer of funds to non-listed systems..(3)The financial crisis of Leshi exacerbates the financial risk of Leshi Internet;(4)Leshi Internet did not set up anindependent risk management department,and managed their financial risk with self-management groups and subsidiaries.Over-emphasis on expansion and neglect of financial risks,insufficient management of specific financial risks,are the main problems of its financial risk management.And finally put forward corresponding suggestions.The development prospect of the Internet industry is broad.Studying on the financial risk management in this industry will not only play a supplementary role in verifying the existing relevant theories,but also play a guiding role in the development of the enterprise.The existing literatures mainly focus on the study of the profit model of Leshi Internet.This paper has certain innovation on its financial risk management.Since Leshi Internet is representative of enterprises in the Internet industry,its research on financial risk management will have certain industry reference value.