Research On Financial Risk Management Of Internet Enterprise Business Expansion Model

In recent years,with the advent of the new era,the competitiveness of all walks of life has become increasingly fierce.With the rapid development of Internet technology and the rapid development of the industry,Internet companies have fallen into fierce competition.In the Internet industry,we have Xiaomi,Youku,Tencent and LeTV.They are several giants in this industry,and LeTV.com is the earliest company that has begun to compete in the Internet industry in China.It has created a vertical platform of "platform + content + terminal + application".However,in recent years,LeTV has frequently fallen into financial crisis and even faced the risk of delisting.Some companies succeed and others fail in the search for business expansion models.Therefore,the research of enterprise financial risk management is a permanent problem.This paper takes leshi,a more representative company,as the case study object,and combines ratio analysis and comparative analysis according to the company's strategic objectives,industry nature and business characteristics.Through the analysis of the synergetic effect and scope economy of letv's business model,the paper points out the financing risk,credit risk,cost risk and investment risk of letv.And found out the reasons for the formation of these risks: financing risk caused by financial leverage imbalance;Credit risk comes from credit policy overpayment and a large number of related transactions.The cost risk is caused by the negative profit failure of terminal business after the industry competition becomes more and more fierce.The investment risk is caused by the increasing investment scale.In view of these risks faced by letv,this paper also gives appropriate Suggestions at the end of the paper: adopt business focus to avoid blind expansion;Use synergies to develop cash cow and star businesses,and use economies of scope to research,develop and innovate technology-related systems;Purchase credit insurance by selling on credit;Reasonable leverage management,optimize the capital structure.This paper analyzes the impact of business expansion on financial risks by means of financial leverage,synergies and economies of scope,and makes a targeted study on its risk management indicators and early warning measures.In practice,decision makers should identify financial risks and adjust business expansion patterns.Therefore,this paper takes letv as an example to analyze the financial risk management research scheme under the business expansion mode,which provides good Suggestions for the company and provides reference significance for other listed companies and operators.