Research On Financial Risk Of A Company’s Diversified Operation

With the development of society,people are increasingly pursuing spiritual "high-quality" experience.At the same time,the support of national policies for the cultural industry has also promoted the development of the cultural media industry.In recent years,the development of the Internet has promoted the connection and integration of cultural products,making the boundaries between film and television,animation,literature and other fields blurred.In this context,many cultural media companies have moved towards the road of diversified development.The successful application of diversification strategy can improve the business ability of enterprises,but the failed diversification strategy will bring risks to enterprises.Therefore,in the process of implementing diversification strategy,the control of enterprise financial risk is very important.This paper selects company a,which is a representative in the cultural media industry,for research and analysis.Firstly,it analyzes the general situation of company a and its industry background,diversification development process,diversification degree and the implementation motivation of diversification strategy;Secondly,select the data from 2013 to 2020 to identify the financial risk under the diversification strategy of company a from three aspects: financing risk,investment risk and operation risk,and use entropy method and efficiency coefficient method to evaluate the financial risk;Then it analyzes the causes of financial risk under the diversification strategy.Finally,according to the analysis results,it puts forward relevant suggestions on the control of financial risk under the diversification strategy of company A.Through the research,it is found that the radical diversified expansion strategy of company a intensifies the financial risk of the enterprise.The company faces some risks in financing,investment and operation,and many indicators are obviously abnormal;The degree of financial risk of the company is basically consistent with the trend of diversification.Due to the rapid expansion of diversification,single financing channels,lack of expansion planning,inadequate resource integration,insufficient prediction of investment projects,unreasonable credit policies,insufficient financial risk early warning ability and other reasons,the risk is out of control.According to the analysis results,this paper puts forward some suggestions for the financial risks of company a under the diversification strategy,in order to help company a control financial risks under the diversification strategy and provide suggestions for the development of similar cultural media listed companies.