Financial Risk Assessment Of Coal Enterprise Based On Integration Strategy

As we all know, the coal industry which is one of the most important industry in our country is facing many problems. Especially in near years, the coal enterprises face more new challenges in development and management. This paper focuses on the financial risk of coal enterprises with the integration strategy.First, this paper presents us the background and significance of this paper, and reviews the research results on this topic. After summering the research, this paper tries to assess the financial risk of coal enterprises who has implemented integrated strategies.Secondly, the basic concepts and theory are outlined. Fist, this paper describes the integration strategy and considers integration strategy is a good way for coal enterprises to cope with today’s complex external environment and develop sustainably. Meanwhile, this paper defines the basic concepts, the characteristics and types of financial risk.Third, this paper researches the environment of financial risk management of coal enterprise, analyzes the financial management environment of coal enterprise, such as macroeconomic environment, the relevant policy environment and the coal industry environment. In addition, this paper suggests coal companies to give up the traditional single development model and try to implement the integration strategy.Fourth, the Financial Risk Evaluation Index System of coal enterprises with the integrated strategy was constructs. This system contains the solvency, profitability, operational capacity and development capacity. The corresponding index was constructed.Fifth, the paper selects 26 coal listed companies that implement the integration strategy as samples, then analysis changes in their financial condition in recent years. After that, this paper uses the Z-score model to count the financial dates of listed companies, calculate them and do a comparison between the results of Z-score model and the average changes in their financial condition. Finally, analyzed the comparative results and the financial risks of coal companies were evaluated.Finally, measures to deal with financial risk management for coal enterprise are proposed.