| In recent years,the growth rate of the domestic new normal has gradually slowed down,and the real economy has been declining with the upgrading of market consumption.In this context,the Internet industry with the support of policies and sufficient space for the rapid growth of development space,has become a new driving force to promote China’s economic development.Because of the rapid development of technological innovation of Internet enterprises,and in recent years,the state’s awareness of the protection of cultural copyright has been gradually strengthened,making Internet video enterprises need to face very fierce market competition from the beginning of development.Traditional business models that rely on advertising revenue are no longer able to fully cover high video rights fees,and Internet video companies want to expand their business areas to find other sources of profit,a process that requires companies to maintain a good financial position to cope with rapidly changing market conditions.Therefore,it is very important for Internet video enterprises to do a good job in financial risk management.Storm Group was listed on the Shenzhen GEM on March 24,2015,proposing the "Global DT Big Entertainment" strategy and rapidly laying out VR,sports,TV and other cutting-edge areas.In just two months,the share price rose from a maximum of 7.14 yuan per share to 327.01 yuan per share,with the company’s market value of more than 40 billion yuan.However,on December 31,2019,Storm Group shares closed at RMB3.19 per share,reducing its market value to RMB 1.203 billion.At the same time,the frequent reduction of executives,only 10 employees,founder Feng Xin arrested and other series of negative news to the Storm Group’s reputation dropped sharply.On August 30,2019,Storm Group announced that its shares were at risk of being suspended from listing.From the beginning of the listing of 37 consecutive rise and fall board to become the market’s attention of the "ghost shares",to now become shell companies on the verge of bankruptcy.This paper will take The Storm Group as the research object,and conduct in-depth and systematic research on the financial risk management of enterprises.This paper uses literature research,case analysis and other research methods,based on the theory of capital structure and internal control on the theory of comprehensive risk management,this paper first analyzes the financial index of the group in recent years and deeply studies the various types of financial risks it faces;Secondly,the financial risk causes of Storm Group are studied and summarized,and finally,in the light of the shortcomings of the current financial risk control measures of enterprises,the paper puts forward some suggestions to improve the financial risk control measures of enterprises.The study found as follows:(1)Storm Group’s overall financial position continues to deteriorate after listing,with Storm Group at greater risk of bankruptcy since 2016;(2)The financial risks facing Storm Group can be divided into financing risk,investment risk,operational risk and cash flow risk;(3)Too aggressive strategic layout,increased competition in the industry and poor internal "blood-making"capabilities are the main causes of storm group financial risk;(4)Storm Group’s financial risk control initiatives are flawed:there is no independent risk management department,high risk of financing channels and lack of unified management tools of the Group.Taking Storm Group as the research object,this paper makes an in-depth study on the analysis and control of enterprise financial risk,and puts forward some suggestions for targeted countermeasures,so as to provide theoretical guidance for other Internet video enterprises to carry out financial risk management and promote the healthy development of the industry. |
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