| With a series of policies favorable to the development of the Internet finance industry,the Internet finance industry has been developing rapidly,and the number of platforms and the scale of the industry in various fields of Internet finance have shown explosive growth over time.This innovative combination of Internet and finance has instantly become a ’hot spot’discussed in the securities market because it breaks the bottleneck of traditional finance development.Many manufacturing companies that are in difficulty or are eager to find a change have started to enter the Internet finance industry across industries.In the fireworks industry,due to the frequent occurrence of safety accidents,increased awareness of domestic environmental protection,and rising raw materials for fireworks,the domestic fireworks market demand is shrinking,and the development prospect is not optimistic,so branches within the industry use cross-industry transformation to seek new profit growth points.Firstly,this thesis uses CITESPACE visualization analysis to derive the research dynamics of transformation,and then determines the research direction with cross-industry transformation as the theme.Then,by studying the literature on cross-industry transformation and financial risk at home and abroad,we sort out the concepts related to cross-industry transformation,and link the competitive strategy theory and core competence theory as the basic theories for studying financial risk to cross-industry transformation.Then,Panda Gold Holdings is used as the research object to analyze in detail its business characteristics,operating conditions,motives and history of cross-industry transformation,and the event study method is applied to find that the impact of cross-industry transformation on the shortterm performance of the company is not significant.The five elements of the COSO-ERM(2017)framework are then used to dissect the company’s financial risks and identify its salient issues as:unclear strategy and goal setting and weak risk management awareness.Factor analysis and the Z-value discriminant model are then applied to evaluate the financial risk of Panda Gold Holdings,and the basic conclusion of the study is that cross-industry transformation may increase the financial risk and deteriorate the company’s financial position.Finally,based on the cross-industry transformation event of Panda Gold Holdings,several suggestions are made to strengthen financial risk control for companies in cross-industry transformation.As the only listed company in the domestic fireworks industry,the study on the financial risk of cross-industry transformation of Panda Gold Holdings has strong implications for companies in the fireworks industry on the one hand,and also serves as a wake-up call for manufacturing companies that are undergoing or will undergo blind cross-industry transformation on the other. |
