| China is currently in a period of rapid economic growth, in which the demand for various types of mineral products is growing. While the spot market price of mineral products is volatile, which may result in uncertainty and high costs of the mineral companies depending on mineral products.Only by reducing this risk brought by the raw material supply and its price fluctuations, can mineral companies achieve stable operation and long-term development.The paper first introduces the development of mining and capital market financing, risk management theory and research, and we analysis and compared more paper have researched in mining companies to pay insurance use of derivative products and risk management costs of domestic and foreign. On this basis, we analysis the listed companies on risk management of mining by empirical in China. In this paper, we choose the companies as mining, processing, trade and so on, all these mineral products have "quasi-financial" except coal listed. As we know, coal doesn't have this characteristic. The results showed that:the interest coverage ratio and risk management expenses negative linear correlation, the main business revenue growth and risk management linear correlation expenses, debt ratio and risk management company expenses linear correlation. As different from other research, we consider the possession of resources and reserves of mining companies, and the result showed that negative linear correlation to risk management company expenses. At present, there is very small number enterprises implementation of risk management. But people realized that the implementation of risk management on the importance of enterprise development, mining companies can further enhance the value of the themselves by risk management, and now large-scale companies has their own risk management team. For our empirical results, we encouraged our resources companies buy derivative products actively, and construct professional team for risk management. |
PDF Full Text Request