Research On Corporate Financial Risks And Countermeasures Under VIE Framework

Choosing to list overseas has become a means of financing for many Chinese companies.Since the listing of "Sina" in NASDAQ in 2000,the VIE model(variable interest entity)has gradually entered the public's field of vision.The VIE model also has a name in China called "protocol control",which means that the investment company controls the invested company by means of an agreement instead of equity.It is precisely because of the particularity of the VIE model that companies using this structure face more financial risks.According to the development of VIE model in China,this paper analyzes the financial risks faced by VIE model enterprises by taking "XC network" as the analysis object.The main research contents are as follows:The first chapter is the introduction part of the article.This chapter first introduces the research background of the paper and describes the development of the VIE model in China.Secondly,this chapter clarifies the research significance of the paper,emphasizing that the VIE model will bring additional financial risks to the enterprise;This chapter summarizes the relevant literature review of the reference,and states the research content and the research methods involved,and sorts out the overall framework of the paper.The second chapter,as the theoretical basis of this paper,defines the relevant theories and financial risks of the VIE model.This section details the concept,structure,and protocol content of the VIE model and the financial risks that the company may have in its day-to-day operations.This chapter defines the concepts involved in this article and is the theoretical basis for later research.The third chapter introduces the additional financial risks that companies will face in the VIE model.This chapter divides these financial risks into compliance risk,foreign exchange risk,tax risk,control risk,and default risk,and analyzes each category's risks.The fourth chapter is the main part of the article-case analysis.This paper selects "XC Network" as the main body of analysis.This chapter first introduces the status of the "XC Network" company,the background of the VIE model,and the specific VIE structure.Then,it selects the company's financial indicators and compares it with other companies in the industry to analyze the "XC network".Financial risks due to the use of the VIE model and recommendations.The fifth chapter is based on the analysis results of Chapter 4,and proposes countermeasures for various financial risks faced by VIE model enterprises.The sixth chapter is the conclusion chapter,which summarizes the financial risks faced by VIE model enterprises,and points out the shortcomings of “XC Network” in the process of risk management,so as to draw conclusions and prospects for the development of VIE model in China..The innovation of this paper in the study of VIE mode is that,firstly,the domestic research VIE model stays at the legal level,and does not go deep into the daily operation of the enterprise.This paper makes up for the vacancy of financial risk research;second,this paper When the research is combined with the actual situation,the "XC network" is taken as an example.From the actual situation,it is not empty talk theory.Thirdly,when studying the financial status of "XC Network",the financial ratio is selected for data analysis,and other enterprises in the industry are selected.Contrast,can directly reflect the financial performance of the "XC Network".