Analysis Of The Causes Of Lexus Net Capital Chain Breakage

In recent years,while China's economy has developed rapidly,the reform of the market economic system has also been carried out in an orderly manner.In the process,Chinese enterprises have accumulated huge risks while obtaining good development opportunities.Many companies in the market have broken the capital chain for various reasons and even declared bankruptcy.This paper selects LeTV as the research object to analyze the reasons of its capital chain break,and can play an early warning role for other listed companies,so that they can carefully choose the way of enterprise development.At the same time,it puts forward how listed companies can avoid the risk of capital chain breakage.Some constructive opinions enable stakeholders to use the company's financial data before the corporate capital chain breaks,adopt effective early warning methods to determine the security level of the capital chain,and take effective preventive measures in a timely manner to reduce or avoid the benefits to a certain extent.The economic loss of the relevant person.This paper takes the listed company,LeTV.com as the research object,and takes Leshiwang's capital chain break event as the main research content.It describes in detail the process of Leshiwang's capital chain break,and combines theoretical knowledge such as trade-off theory,internal control theory and M&A efficiency theory.Using factor analysis,financial analysis,and event research,the reasons for the break of the capital chain of LeTV.The research in this paper finds that low profitability and insufficient hematopoietic capacity are the basic reasons for the break of the capital chain of LeTV.However,the expansion of radical and lack of core competitiveness is the root cause of the break of Leshinet's capital chain.Through the research on the LeTV case,it is found that in the process of diversification,listed companies need to maintain their core competitiveness while maintaining a reasonable capital structure,so as to effectively avoid the occurrence of capital chain breaks.And this article also provides several suggestions for listed companies to avoid the break of the capital chain: strengthen cash flow management,establish a reasonable capital structure,etc.,so that stakeholders can make good use of the company's financial data before the corporate capital chain breaks.Take effective early warning methods to identify the safety level of the capital chain,and take effective preventive measures in time to reduce or avoid the economic losses of stakeholders to a certain extent.This is also the significance of this study.