Research On Financial Risks Of Internet Enterprises Under Diversification

With the rapid development of the market economy,and the changing economic environment,the competition between enterprises is more and more fierce.In this context,the past single business stimulation can not meet the development needs of enterprises.In order to improve their own competitiveness and win more opportunities,more and more enterprises choose diversified business stimulation to improve economic efficiency.However,As an old saying that goes,every coin has both sides.Although diversification strategy has the advantages of helping enterprises use redundant resources,find new growth points and improve profitability,it can also cause risks such as the fracture of capital chain or large increase of liabilities,which will bring serious financial crisis to enterprises.In recent years,the new social form of "Internet +" has been deeply rooted in the hearts of the people.Different from the monotony and weakness of traditional industries,the emerging Internet industry has started to develop rapidly and expand to many fields.However,in the process of seeking its own development,many Internet enterprises encounter significant financial risks and are on the verge of bankruptcy.Therefore,in the process of diversification,enterprises in the industry must attach great importance to financial risk and prevent financial crisis in advance.First of all,this paper introduces the background,purpose and significance of the research.In addition,it reviews the research results of domestic and foreign scholars on diversification,financial risk and the relationship between them.It also expounds the basic knowledge of related theories.Then based on previous research results and industry characteristics,two hypotheses on the relationship between diversification and financial risk are proposed,and multiple linear regression analysis is performed on the broad categories of information transmission,software and information technology service industries that the Internet industry belongs to.And it conforms that there is a positive correlation between diversification and financial risk in this industry.Finally,from the perspective of modern enterprise financial management,the financial risk of theenterprise is divided into financing risk,capital operation risk,debt repayment risk and income distribution risk.The causes of financial crisis in the process of diversification of Baofeng Group Co.,Ltd are explored,and relevant suggestions are put forward.It is hoped that the conclusion of this paper can provide some reference for other Internet enterprises that carry out diversified operation that can reduce the occurrence of similar events.