Integrated Evaluation of Financial Risk in Coal Industry Restructuring: A Model of Linear Regression and PCA

Abstract

Aiming at the integrated evaluation problem of financial risk in coal industry restructuring, a model of linear regression and PCA is put forward. This paper studies the univariate correlation and multivariable mixed correlation between the main business income and the book value of fixed assets and nonfixed assets in the statements of coal listed companies and gives the correlation function between the variables by using a variety of univariate linear, univariate nonlinear, and binary linear regression methods. It also points out that the coal enterprises in China are basically in the stage of increasing scale income at the present stage and can continue to achieve rapid increase in profits through mergers and acquisitions and other expansion methods. At the same time, it is also concluded that nonfixed assets, namely, intangible assets and human capital, contribute more to the main business income of coal enterprises in China, which objectively proves the correctness of our thinking of developing knowledge economy.