The Impact Of Ownership Structure On Financial Risks Of Chinese Automobile Manufacturing Industry

Affected by the dual impact of the global economic downturn and the continuous saturation of my country’s car ownership,the uncertainty of the performance of the automobile manufacturing industry is increasing,and the number of companies in the entire industry that eventually get into business difficulties due to financial risks is increasing,such as Zotye Automobile,Lifan Motors and others have successively experienced financial risks,and some have even gone bankrupt.Therefore,it is of great practical significance to accurately distinguish and measure the financial risks faced by chinese automobile manufacturing industry to maintain the sustainable development momentum of enterprises in the industry.The financial risk of an enterprise from occurrence to deterioration or even business difficulties is a process that gradually deteriorates over time,usually reflected through its financial data.This paper starts with the concept and theoretical basis of financial risk and equity structure,based on the positive results of the analysis and evaluation of financial risk factors by domestic and foreign experts,combined with the current situation of Chinese automobile manufacturing industry and reporting data,the level of enterprise financial risk measured by the Altman Z-score model as an in-depth analysis of the three aspects of equity concentration,circulation share ratio,management shareholding ratio,etc.The arguments are adjusted by the nature of property rights and different financial risk areas.The results show that there is a negative correlation between equity concentration,management shareholding ratio and financial risk,positive correlation between the proportion of outstanding shares and financial risk,and through the group return of enterprises in different financial risk areas,it is verified that the equity structure has a greater influence on financial risk when the financial risk occurs.At the same time,through the return of the nature of property rights grouping proves that non-state-owned enterprises are more sensitive to the impact of equity structure on financial risks than state-owned enterprises.Finally,based on the conclusion of theoretical analysis and empirical testing,this paper puts forward some suggestions on how to reduce the probability of financial risk occurrence of listed enterprises in China’s automobile manufacturing industry,which need to further optimize the equity structure,improve the concentration of equity,and strengthen the equity incentive for managers.