The Financial Flexibility Research Of China Shenhua Energy Company Limited

With the development of Chinese economy,the uncertainties in the external environment of Chinese enterprises has grown with time.Some of the uncertainties are positive,but more of the Uuncertainties are negative for enterprises.In recent years,influenced by the political and economic environment at home and abroad,the enterprises need to be prepared in advance.Since the 2008 financial crisis,financial flexibility gets into the perspective of scholars again.Financial flexibility can help enterprises response toadverse shocks which from the external environment and grasp the investment opportunities.Enterprises need to consider the financial policy choice,and they should pay attention to how to maintain adequate financial flexibility.In recent years,the coal enterprises are under the uncertain condition,they need to try their best to strengthen the emphasis on the financial flexibility.This paper adopts the methods of literature research and empirical research,chooseing China Shenhua Energy Company Limited as the research object.Besides,Collecting financial data of China Shenhua Energy Company Limited and coal mining and dressing industry in 2012 to 2015.On the basis of index analysis and model analysis,to know about the financial flexibility of China Shenhua Energy Company Limited.According to the research,the financial flexibility of China Shenhua is relatively high and the way to release financial flexibility is reasonable.If the enterprise wants to reserve and release financial flexibility,they need to focus on Total cash flow rate first of all,and then Cash dividend security multiple.The purpose of this paper is to research the financial flexibility of China Shenhua,and give some advices to the other coal enterprises on how to reserve and release financial flexibility by drawing from China Shenhua's playbook.