Research On Financial Risk Analysis And Control Of Enterprises Under The Intergenerational Inheritance Model

In recent years,the issue of financial risk in family businesses has received increasing attention from the industry.After decades of development,Chinese family businesses have made tremendous contributions to the country’s economic operation and social stability.However,with the start of many family business inheritance plans,some problems in their business activities have gradually been exposed,especially the shortcomings and deficiencies in financial risk assessment and control,which seriously affect the implementation of intergenerational inheritance of enterprises.This paper takes Country Garden as the research object,uses the event study and Z-value model to study the corporate financial situation in the critical period of its family’s intergenerational inheritance,and analyzes and evaluates the financial risks encountered by Country Garden in the inheritance period.In this process,based on the business behavior of the second generation successor,analyze whether the inheritance plan has a positive impact on the avoidance of financial risks in Country Garden,and explore whether the inheritance plan of family businesses can help the enterprise avoid certain financial risks.Firstly,this article conducts research work based on the current research status of financial risks and intergenerational inheritance in family businesses,and analyzes the business strategy and financial risk status of the enterprise launched during the intergenerational inheritance period of Country Garden;Secondly,using the event study,the market effect analysis of the key time nodes in the inheritance period of Country Garden shows that the inheritance plan can inhibit the financial risk of enterprises;Once again,analyze the financial risk categories and causes of Country Garden’s inheritance over the past decade using ratio analysis method;Finally,the Z-value model is used to analyze the financial situation of Country Garden during the ten year inheritance period,evaluate its financial risks during the inheritance period,determine that the financial system of Country Garden under the leadership of the second generation is relatively safe,and propose some control suggestions for potential financial risks.Through the analysis of this article,it can be concluded that the inheritance model of Country Garden has an impact on the formation and control of its financial risks.Firstly,the intergenerational inheritance of Country Garden has led to related party transactions,leading to investment and financing errors;Secondly,the agency cost of professional managers in the intergenerational inheritance of Country Garden will lead to an increase in enterprise management costs;Thirdly,the change of power has a negative impact on the financial situation during the inheritance period.Based on the current development status of Country Garden,it is necessary to continue the diversified business strategy implemented during the inheritance period,reduce the impact of inheritance,increase equity control,broaden and improve its investment and financing channels,and further avoid its financial risks.