Financial Risk Prediction Research Of Energy Service Companies Of The Energy Management Contracting

In recent years, the Energy Management Contracting in our country are spreadedrapidly. There is a growing number of energy service companies that have capacity forindependent innovation in China. As of May2013, the total of energy servicecompanies which passed national recognization has reached3210, which combinedwith the value of165billion made by all energy service companies in the end of2012,it means that the size of the domestic energy service industry is expanding fast. Ourgovernment makes a contribution from financial support, policy support, technicalinnovation and other aspects, in order to promote the development of the energymanagement contracting in China. However, while the industry is expanding, energyservice companies have to face the disorderly competition from the energy servicemarket and the drawbacks from the energy management contracting own, which willlead energy service companies to exisit in financing risk, investment risk, capitalrecovery risk and profit distribution and other financial risks. Consequently, how toadapt to changes in the environment and improve the anti-risk ability becomes a realand serious problem for the energy services company. For this reason, it’s importantand urgent to make a research about how to effectively control the financial risks ofbeing based on energy service companies of the energy management contracting.Firstly, the paper illustrates the research background and significance, review thecurrent domestic and international energy management contracting about thedevelopment of mechanisms and energy service companies of risk studies, and thosestudy papers about theory and empirical research of financial risk written by domesticand international scholars. Secondly, based on the features of energy servicecompanies and the energy management contracting, the paper analyzes the reasonswhy these companies break out financial risk. Thirdly, combined with reason analysisand experience of empirical research about company financial risk prediction fromprevious scholars, the paper picks22special treating public limited energy servicecompanies and28normal operating public limited energy service companies as theresearch samples, and make the model of company financial risk prediction by meansof using factor analysis and logistic regression analysis. What’s more, it makesanalyze and summarize for the prediction and proposes some related suggestions.