The Empirical Research On Financial Leverage In The Coal Listed Companies Of Shanxi

Coal is the largest reserves ,the most widely distributed and conventional energy of world,is the most cheap energy.At the same time .In the recent years, global economic continuely grows,the price of oil and natural gas rose sharply.That leads to rapid growth in global coal demand and prices rise gradually.With the sustained and rapid developmentof our national economy,the rapid development of Electric power, metallurgy, building materials, chemical industry have a substantial increase in coal demand.Shanxi province is abundant in coal resources.The coal industry is the pillar industries in economic development in Shanxi, so coal is the main business of the enterprises in the majority of listed companies in Shanxi.In the year of 2009,Shanxi carried out the acquisition and mergers in coal enterprises ,so that the coal enterprises can be bigger and stronger,and improve the competitiveness of enterprises.We need adequate capital to support capital scale.There are two capital sources : one is the internal finance the other is the external finance.The external finance can bedivided into two types:equity finance and debt finance.The financial leverage effect is caused by the debt financing.We should pay interest before tax which induce the cost of financing business.At present,the related research is limited to estimate the reasonable range of financial leverage,there is a blank which isdirected to a specific industry to study.This article is aimed to listed coal Company to anaylse the range according to the characteristics of the coal industry. By the measure of mean estimation, when the company's financial leverage at a reasonable range ,the company show a good performance.Because of lack of flexibility,manager cannot make timely adjustment based on changes in the business environment.The innovation of this paper is to use "mean estimation"to estimate reasonable financial leverage.