The Financial Risk Research Under M Enterprise Diversification Strategy

In 2014,China’s economy showed a new normal,characterized by a slowdown in economic development and optimization and upgrading of economic structure.In order to cope with the changes of economic development and improve competitive advantage,many enterprises began to carry out strategic transformation and embark on the road of diversified development.With the pressure of environmental protection policies and the continuous improvement of the marketization of the coal industry,most coal enterprises have selected the diversified management strategy in order to reduce risks.Based on this,this paper selects the representative m enterprise in the coal industry as the research object to carry out the financial risk research under the diversification strategy.Firstly,it describes background and significance of the research,analyzes and sorts out the relevant literature and theoretical basis of diversification strategy and financial risk research.Then it expounds the implementation process of M enterprise’s diversification strategy,and evaluates the degree of diversification of M enterprise in different stages.Then qualitatively identify the financial risk from the perspectives of financing,investment and operation,and quantitatively evaluate the financial risk level according to the Z-value model,and come to the conclusion that the financial risk of M enterprise is at a high level for a long time.Then,from the perspective of diversification strategy,this paper looks for the causes of financial risks in financing,investment and operation activities,and finds that under the condition of limited equity financing,the rapid expansion of enterprise diversification leads to the rapid increase of enterprise debt scale;Blind diversified investment leads to high investment cost and weak Industrial Synergy in diversified industries;The increase in the scale of accounts receivable and the extension of account period affect the capital turnover.The diversified expansion mode of short-term loan and long-term investment threatens the capital liquidity.Finally,according to the causes of risk,this paper puts forward the Countermeasures of financial risk,including reasonably controlling the speed of diversified expansion,broadening financing channels,making strategic investment planning,enhancing the synergy between industries,strengthening the management of accounts receivable and disposing the return funds of non core assets.Through the analysis of the financial risk of M enterprise under the diversification strategy,this paper adds a new analytical basis to the theoretical relationship between the diversification strategy and financial risk,expands the research ideas of the financial risk under the diversification strategy of the coal industry.