Operational Efficiency and Financial Risk of Local Financing Platform

The financial risk of local financing platform is not only caused by excessive debts, but also related to operational efficiency. This paper verifies the relationship between operational efficiency and financial risk by using the financial data of Dangtu Urban & Rural Construction Investment Co., Ltd. Results show that low sales revenue and slow inventory turnover of local financing platform are the main factors of potential financial risk. Therefore, it is a must to expand business scale, improve operational efficiency and reduce the occupation of fund, so as to control the financial risk of local financing platform,