Research On Financial Risk Management Of State-owned Enterprise Groups In The Transportation Industry

Transportation connects various areas to facilitate public travel.The transportation industry undertakes large-scale infrastructure construction.The development of this industry is related to national economy and people's livelihood and plays an important role in the social economy.With the rapid development of our country's transportation industry,enterprises in the transportation industry have gradually developed into a group.The scale of operation has continued to expand and the business has become increasingly complex.Due to the failure of its financial management to keep up with the pace of business expansion,coupled with the industry's inherent characteristics such as high leverage and low turnover rate,companies face greater financial risks.Among enterprises in the transportation industry,state-owned shares account for a high proportion.Taking Shenwan transportation industry as an example,68 of the 92 enterprises are state-owned enterprises,accounting for more than 70%.Due to the unique nature of state-owned enterprises,they also have more problems in financial risk management,which is difficult to meet the needs of increasingly complex economic activities after the scale expansion.At the same time,with the development of the market economy,the fierce market competition faced by state-owned enterprises has increased significantly.If financial risk management is not done well,it will have an adverse impact on the development of the enterprise,which is not conducive to the preservation and appreciation of state-owned assets.Therefore,state-owned enterprise groups in our country's transportation industry urgently need to make corresponding improvements in financial risk management.Based on the above background,this article focuses on the financial risk of state-owned enterprise groups in the transportation industry,analyzes its causes and proposes corresponding measures.This article uses literature research method,investigation research method and case analysis method for research.Firstly,sort out the existing domestic and foreign financial risk related literature.Secondly,analyze the characteristics and causes of financial risks of the state-owned enterprise groups in the transportation industry from the aspects of financing,investment,and working capital.Then,propose corresponding preventive measures.Subsequently,this paper selects SJ Group as a case,analyzes the current status of financial risk management and finds that SJ Group has good financial compliance.But there are also problems such as the lack of financial risk management institutions,low risk identification and evaluation frequency.Next,the main financial risk points and causes of the group are analyzed,which are financing risk and working capital risk.Specifically,the financing risk points are fund wastage due to the excessive fund raising and the single financing channel.The working capital risk point is the risk of working capital being eroded by the misappropriation and inefficient use of working capital.At the same time,this article makes a preliminary quantitative analysis of the group's risk level using the Z-score model,which finds that the group's financial risk level is a little bit high and should be paid attention to.Therefore,this article points out suggestions as follows: adopting the settlement center or fund pool mode to implement centralized fund management and taking advantage of the group's resource allocation;actively expanding external financing channels and exploring new financing methods;identifying financial risks in a timely manner and building a risk evaluation index system;Improve financial risk management system and cultural construction.Finally,the paper concludes that under the background of continuous expansion of scale,state-owned enterprise groups in China's transportation industry are facing greater financial risks.They should control their own leverage and seek the optimal capital structure;pay attention to the use and utilization efficiency of funds raised;do a good job of management before and after investment;strengthen centralized management of funds.The main contribution of this article is that previous research on financial risk management often focused on the real estate industry and the financial industry,or just a general analysis of financial risk.This article focuses on the current status of financial risk management of transportation industry state-owned enterprise groups in our country and uses targeted suggestions such as our country's financial risk management framework and early warning model.Therefore,the results are more suitable for our country's reality.At the same time,this article has important reference significance for similar transportation industry state-owned groups to find and prevent their own financial risks,which is conducive to the sustainable and stable development of this industry.