Research on the financial risk prevention of the coal enterprise diversification

Abstract

Diversification is a mode of operation which is widely used by the development of group companies. The reason is that diversification can play internal strength, access to synergistic effect of resources, and enable enterprises to the orbit of strengthen and expand. But in reality, many businesses will also diversified into the development of difficulty or even go bankrupt. In order to stay sustainable in business, enterprises must be integrate their actual conduct to management and control effectively. By analyzing the status of China's coal enterprises diversification and the financial risks faced, we propose some measures to guard against financial risks, and provide final support for the sustainable and healthy development of the coal enterprises.