Study On Financial Risk Of Listed Internet Enterprises

In 1987,the Internet began to enter China.Then thirty years were w the golden age of the development of Internet enterprises.A series of Internet products,such as search engine,instant messaging software,e-commerce platform and so on,have changed people's traditional life and production mode deeply.With the popularity of the Internet,the scale of the Internet market and Internet companies are also growing.According to the data,the business income of the top 100 Internet companies has exceeded the trillion and hundreds of billions of customs,and most of them are concentrated in the top ten Internet companies.This shows the high revenue of China's Internet industry concentration degree and the obvious advantage of scale.In the new era,the Internet enterprises have a good environment of development,broad market demand,high profit returns and strong policy support,which have provided favorable conditions for the development of Internet enterprises.However,Internet companies also face higher financial risks when they have a good development environment.Therefore,how to identify and prevent financial risks is particularly important.In order to survive in the fierce market competition,Internet companies in China need to pay attention to the financial risks they face everytime.The Internet enterprises can select the corresponding indicators to build financial early warning system by combing their own internal and external environment then evaluate their own financial risks through warning system and take corresponding measures to prevent and control the risk.The research on the financial risk of Internet enterprises can not only help enterprises to identify and control the risks correctly,but also provide a guarantee for their further development.It also has a certain theoretical and practical significance.The main idea of this article is based on the summary about financial risks which related research at home and abroad,combined with the characteristics of the Internet companies and risk factors,from the financing risk,investment risk,profit model,risk,cash flow risk from four aspects of the financial risk of listed Internet companies may face are analyzed.Then taking Letv as an example,from the perspective of financing,capital collection,operation,profit and cash flow to analyze the financial risk which Letv faced,and found that Letv had problems which contains unreasonable capital structure,in the pursuit of short-term interests blind expansion leads to excessive investment scale,profitability,and to increase the sales credit blindly lead to problems such as accounts receivable amount is too large.The financial risk of Letv was evaluated again through the f-score model,and it was found that the financial risk of Letv was large and tended to increase.Finally,combing with the case,this paper puts forward the financial risk prevention and control measures of listed Internet enterprises from the perspective of the government and enterprises.From the perspective of government,it is necessary for the government to create a good financing environment and legal environment for enterprises.From the perspective of enterprises themselves,it is also necessary to prevent and control risks from financing,receivable management,profitability,technology,financial earlywarning system and other aspects.