Research On Debt Risk Identification,Evaluation And Control In Enterprise Financialization

As China’s economy has entered a "new normal",enterprise finance has become one of the main characteristics of the "transition from reality to emptiness" trend in China’s economic development.More and more entity enterprises are turning a large amount of industrial capital into finance and real estate,the increasing proportion of profits from financial channels has attracted much attention in recent years.HNA Group is a typical example.As one of the four largest civil aviation enterprises,in the face of the macro-policy changes and the intensification of market competition,HNA Group has adopted the development mode of enterprise financialization,and the scale of the enterprise has expanded rapidly,but in order to maintain the expansion of financialization,having to borrow heavily,the risk linkage between the main business and the financial business is strengthened,which increases the risk of default.HNA Group has achieved rapid development in recent years through a series of capital operations and financing,its business covers science and technology,tourism,finance,real estate,retail,logistics and cultural and other economic fields.In 2017,HNA formally set up HNA Capital and HNA Innovative Financial Group,"enterprise financialization" was also completed at this time,but then came the outbreak of the debt crisis.The crisis made HNA Group’s enterprise financial strategy cannot continue,even affected the daily operation of the group.Since its establishment,HNA Group has grown through various capital operations and financial expansion.It has gradually grown from a local airline in Hainan to one of the four largest airlines in China,with its business territory spread all over the world.In this development process,the relationship between financialization strategy and the risk of self-debt financing is thought-provoking.This paper draws on the research results of previous scholars in the field of enterprise financialization and debt risk management,and takes HNA Group,which is in an expansion period from 2011 to 2018,as the research object,this paper analyzes the corporate financialization strategy of HNA Group by case study method and financial index method,and evaluates the debt risk of HNA Group by Multidimensional Index.The article is divided into seven parts:the first chapter is the introduction,the second chapter is the definition of the concept and theoretical basis,the third chapter is the background of the HNA Group case,the fourth chapter is the introduction of the HNA enterprise financial model,the fifth chapter is the debt risk identification and evaluation of HNA Group,the sixth chapter is the cause of HNA Group’s debt risk and suggestions,the last is the conclusion and enlightenment.Firstly,HNA Group prefers debt financing in the process of financing,but the problem of debt risk is more complicated and hidden,and the surface solvency index is better than the industry average,secondly,the debt crisis of HNA Group is closely related to its external financial expansion,and it is difficult to offset the financing cost of the expansion with the profits from the expansion,that led to the debt crisis.Finally,the debt risk of HNA Group is closely related to its financialization process.HNA Group’s Financial Strategy Implementation in its development period(2003-2008)is to some extent beneficial to the development of enterprises,but in its expansion period(after 2009),as the speed of financial expansion accelerated,resulting in a huge debt risk.This paper also evaluates the enterprise financial strategy which is widely used by enterprises in our country,and provides relevant policy suggestions for similar enterprises,which can be used for reference for the long-term development of related companies and industries.