Financial Risk Assessment and Control in the Process of Corporate Diversification Expansion ——A Case Study Based on Alibaba’s Diversification Expansion

Jiahui Yu ()
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Jiahui Yu: Changqing Campus, Shandong Normal University

A chapter in Proceedings of the 2025 3rd International Academic Conference on Management Innovation and Economic Development (MIED 2025), 2025, pp 513-522 from Springer

Abstract: Abstract Against the backdrop of globalized competition and changing market dynamics, corporate diversification and expansion has becomean important strategy for achieving business growth and risk diversification. However, the diversification strategy is accompanied by significant financial risks while expanding market opportunities. As one of the most representative diversified enterprises in China, Alibaba Group, whose business covers a wide range of fields such as e-commerce, cloud computing, financial technology, logistics, etc., the experience of financial risk management and control in the process of its expansion has an important research value. The purpose of this paper is to systematically analyze the financial risks faced by Alibaba Group in the process of diversification and expansion, explore the risk formation mechanism, and propose targeted risk control strategies based on financial data and case studies. The study finds that Alibaba’s diversified expansion faces financial leverage risk and liquidity risk, etc. Alibaba can take business integration and resource optimization in its future diversification strategy, and strengthen synergies between various business segments to prevent risks. The study not only helps to optimize Alibaba’s financial decisions, but also provides a risk warning and management framework for other companies implementing diversification strategies.

Keywords: Diversified Expansion; Financial Risk; Case Study (search for similar items in EconPapers)
Date: 2025
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DOI: 10.2991/978-94-6463-835-6_55

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