Analysis On Financial Risk Of Chinese Rare-earth Listed Company Based On Business Perspective For Sustainable Growth

Under the background of global economic integration, the further development ofreformation of socialist market economy system, the complexity and uncertainty of thecapital market are becoming increasingly prominent. As a result, many companies,which have poorer internal management, have fallen into financial crisis. Factorscausing the financial crisis are often due to a variety of internal and external factors inthe result of the interaction, especially the demand of sustainable growth today. Someenterprises blind pursuit of high growth in the short term will result in financial crisis,the sustainable growth of enterprise financial management has become increasinglyconcerned about the issue. In recent years, rare-earth industry established andcontinuously into the rare-earth listed corporation are facing problems: the rare-earthprices plummeted, the national policy of the rare earth industry more strictly and thefailure of individual corporate restructuring, but now also faced with strict control ofpollution, the industry through mergers and acquisitions and a series of the problem,which because of the irrational pursuit of growth caused by the financial risk is the mostsignificant problem each company have to face. So the rare-earth listed corporation’sfinancial risk prediction and sustainable growth research is necessary and urgent, tocontrol and resolve the financial crisis from the source, which has important theoreticaland practical significance to ensure the sustainable growth of enterprises.In this paper, the method based on the theoretical and empirical analysis, theexperience of the financial early warning model and the model of sustainable growth athome and abroad, based on our analysis on the sustainable growth of resource-basedenterprises related to the theory of financial risk on the summary of the study, throughthe relation analysis of financial risk and sustainable growth, and to construct theappropriate model, for the enterprise financial risk control to provide some referenceand suggestions to realize the sustainable growth. This paper from2009to2013of31 rare earth listing Corporation for five consecutive years, including ST and*ST of6companies,25non ST companies as the research object, selects25reflect theenterprise’s financial situation and the future development capacity index, and throughthe T test to screen out14different indicators of the difference was significant, thedimensionality reduction process by the method of principal component analysis, andfinally into7principal components; through the Logistic regression analysis of financialearly warning model, the influence of7main components of financial risk; the model isproved to be scientific and rational. The analysis results illustrates the effect on theability of China’s rare-earth listed corporations’ financial risk and the sustainable growthrate from the aspects of debt-paying ability, profit ability, operation ability, cash flowposition, growth ability, distribution capacity, leverage, corporation governance, and therelationship between financial risk and sustainable growth.