Research On Financial Risk Management Of Agricultural Listed Companies

As a basic livelihood industry,the development level of agriculture is closely related to the food,clothing,housing and transportation of the broad masses of the society.As a large agricultural country,China has long held favorable policies for the agricultural industry.However,compared with other manufacturing industries,agricultural products generally have the characteristics of long production cycle and great impact by the natural environment.In recent years,the overall development level of agricultural listed enterprises generally shows poor business performance.The problem of poor business performance shows that the risk management awareness of agricultural listed enterprises is weak,and financial risk,as an important part of risk management,is often ignored by the managers of agricultural listed enterprises,which leads to the failure of agricultural listed enterprises to establish corresponding early warning mechanism to deal with the occurrence of risks.Through the summary of financial risks and relevant literature of agricultural listed companies,it can be found that at present,most of the research on the financial risks of agricultural enterprises is based on the empirical research of agricultural enterprises in the broad sense,and less on the case study of financial risks of agricultural enterprises in the narrow sense whose main business is planting.This paper takes a company,a leading agricultural listed enterprise,as the research object,finds and evaluates its current financial risks,and puts forward targeted suggestions,which can better promote the healthy development of agricultural enterprises with planting as their main business.Firstly,the financial risk of company A is identified according to the industry characteristics and actual situation.After identification,it is found that the financial risk of company a is specifically manifested in the four dimensions of financing,investment,operation and income distribution.The financing risk is mainly manifested in the single financing method and the unbalanced debt structure;The investment risk is mainly manifested in the lack of profitability due to excessive reliance on a single rubber product,and successive losses in the investment business;Operational risk is mainly reflected in the untimely collection of accounts receivable;The risk of income distribution is mainly reflected in the lack of growth capacity leading to the non distribution of dividends for three consecutive years.Then,based on the previous risk identification results,the financial risk evaluation system for company A was established by referring to the research of relevant scholars and the actual situation of the company.Then,the entropy method and the improved efficiency coefficient method were used to evaluate the financial risk of company A from 2014 to 2020.Finally,it was concluded that the financial risk performance of company A was dominated by moderate risk,the operating condition was unstable,and the investment risk and income distribution risk were high,The conclusion that the financing risk is the second,the operation risk is the smallest,and the possibility of financial risk is relatively large;Finally,based on the results of risk identification and evaluation,this paper puts forward targeted suggestions,including carrying out diversified financing channels,optimizing the company’s debt structure,strengthening the daily management of accounts receivable,moderately improving the dividend payment rate and formulating diversified distribution policies from the financial level,and putting forward a sound early warning mechanism to optimize the industrial structure,enhance the advantages of the natural rubber industry and improve the internal management of the enterprise from the operational level.Based on the relevant theories of financial risk and the actual situation of the company,this paper identifies and evaluates the financial risk of agricultural listed company A from the four dimensions of financing,investment,operation and income distribution,and gives practical countermeasures,hoping to help the healthy development of the case enterprise,and also hoping to help other similar companies identify and prevent financial risks.