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Empirical study on financial risk factors: Capital structure, operation ability, profitability, and solvency ——evidence from listed companies in China

Author

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  • Gang Fu

    (College of Economics and Management, Sichuan Agricultural University 211 Huiming Road, Wenjian District, Chendu City, Sichuan 611130, China)

  • Weilan Fu

    (College of Economics and Management, Sichuan Agricultural University 211 Huiming Road, Wenjian District, Chendu City, Sichuan 611130, China)

  • Dan Liu

    (College of Economics and Management, Sichuan Agricultural University 211 Huiming Road, Wenjian District, Chendu City, Sichuan 611130, China)

Abstract

This study analyzes financial risk factors of China’s Small and medium-sized enterprises (SMEs), employing Alexander Bathory model for the currently available data on the small and medium enterprise board in Shenzhen Stock Exchange. Financial risk is measured by the Alexander Bathory model. The financial risk was found to be significant and negative correlation with the current ratio, net profit margin, net asset ratio, fixed assets ratio, and to weakly relate with fixed asset turnover, total asset turnover, while there are no significant correlation between financial risk and debt structure, inventory turnover, accounts receivable turnover.

Suggested Citation

  • Gang Fu & Weilan Fu & Dan Liu, 2012. "Empirical study on financial risk factors: Capital structure, operation ability, profitability, and solvency ——evidence from listed companies in China," E3 Journal of Business Management and Economics., E3 Journals, vol. 3(5), pages 173-178.
    • Handle: RePEc:etr:series:v:3:y:2012:i:5:p:173-178
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    Citations

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    Cited by:

    1. Jie Dong, 2023. "Study on the Identification of Financial Risk Path Under the Digital Transformation of Enterprise Based on DEMATEL-ISM-MICMAC," Papers 2305.04216, arXiv.org.
    2. Ioan Batrancea & Ioan-Dan Morar & Ema Masca & Sabau Catalin & Liviu Bechis, 2018. "Econometric Modeling of SME Performance. Case of Romania," Sustainability, MDPI, vol. 10(1), pages 1-15, January.
    3. Oscar F. Bustinza & Ferrán Vendrell-Herrero & Francisco J. Sánchez-Montesinos & José Antonio Campos-Granados, 2021. "Should Manufacturers Support the Entire Product Lifecycle with Services?," Sustainability, MDPI, vol. 13(5), pages 1-14, February.

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    Keywords

    Financial risk; Capital structure.;

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