Research On Vertical Integration Financial Risk Of Coal Listed Companies

As an important energy source of national construction,coal resources have an irreplaceable resource status.At present most coal enterprises are engaged in vertical integrated production and operation,mainly composed of coal,railway shipping,electric power,coal chemical and other industries.The motivation comes from the strategic choice of the company itself and the promotion of government policies.As an important form of industrial organization,vertical integration has been more and more concerned by the business community and academic circles.Everything has two sides.The vertical integration strategy is a neutral strategy.In the process of implementation,it may also be affected by external environment and business management,which will bring more financial risks to the coal enterprises.Uncertainty,the study of the financial risks of coal enterprises has great practical significance under the new situation.First,the research mainly adopts the empirical research method.Firstly,through combing the theoretical analysis of the impact of vertical integration on financial risk from positive and negative angle,the article proposed the research hypothesis of the relationship between the two;then selects 22 coal enterprises as a sample to establish a multiple linear regression model of VAS value(integration degree)and Z value(financial risk).The results prove that the higher degree of vertical integration among coal enterprises,the greater financial risk faced by enterprises;The second part selects Yong Tai Energy(600157),a company with relatively high degree of integration and high financial risk,as the case study object,and analyzes the factors that may generate financial risks in the process of integration.The case study starts from the Z value and analyzes the financial risks of Yong Tai Energy from the analysis of solvency,operational capability,profitability and development capability,mainly involving financial risks in corporate financing,operations and investment.Finally,countermeasures are proposed for each financial risk factor of coal enterprise integration strategy.The paper reveals the mechanism and performance of financial risk through point and face combination,and provides some references for coal enterprises to control financial risk management well under the integrated strategy.