Research On The Financial Crisis Of Letv Diversification Strategy

Diversification strategy is the capital market,many companies have adopted a strategy of diversifying with dispersing risk and gain more financing,find new sources of growth,and to the use of surplus funds for money or other financial interest,etc.But the diversification strategy is a double-edged sword,which also brings a lot of risks to the enterprise.Letv began to implement the diversification strategy in 2011,and broke into bankruptcy crisis in 2017.Based on the networks as the object of case study,to explore the returning of the financial crisis under the strategy of diversifying,first by capital chain safety degree and Z value to evaluate the wealth of networks and bankruptcy,secondly from multidimensional to explore the miniaturization: a financial crisis.Through the study on the course and present situation of the diversification strategy of letv network,this paper finds out the existing problems of the diversification strategy of letv network.Then the financial crisis of letv network is identified and analyzed by the security degree of the capital chain and the z-value test.Of exploration on the issue of investment in cash,the use of leverage fund exploration,diversified strategy under the analysis of several major parts,the problem of capital turnover and explore the decline in cash flow problems,dig out the main reason of the bankrupt crisis.Second,le networks of Mired in financial crisis put forward some coping strategies,reduce the pace,the appropriate equity financing strategy,main business profit,in order to strengthen the management of accounts receivable,and improve their ability to generate cash flow.It will provide references for other enterprises implementing diversification strategy and Internet enterprises.To avoid the risk that diversification strategy may produce,protect the security of enterprise capital,protect the interests of minority shareholders.