Risk Analysis of Financial Investment in Enterprise Financial Management in the Information Age

Abstract

This paper introduces the GAS framework into the research problem of financial asset risk in the financial management of enterprises in the information age, gives the basic expression of the GAS framework model, improves based on the basic expression, and combines it with the traditional GARCH model to construct the GAS-GARCH-sst model. After that, the study of financial investment risk is extended further by constructing the GAS-factor Copula model, and when the parameters of the model are extrapolated, a two-step estimation method is used, i.e., the parameters of the marginal distribution and the parameters of the Copula model are extrapolated separately. Finally, with the help of the GAS-Factor Copula model, the financial investment risk analysis of ML Company can shows that the return on net assets, return on total assets and cost-expense margin of ML Company are lower than the industry average since 2020, and the growth rate of operating income has changed greatly, ranging from -354.88% to 54.3%. Cost-expense margin has been declining consistently since 50.1% in 2017, while cash inflow in investing activities is only 1.9%-17.57% of cash outflow in 2016-2021. This indicates that ML is facing the challenge of financial risk in various financial investments in the information age.

Keywords

• gas-garch-sst model
• gas-factor copula model
• gas framework
• financial investment
• financial risk
• 94a08