The Research On Financial Early-warning Index Of Chinese Listed Companies Of Service Industries

With the deepening of economic reform in China, more and more companies will have to face fierce competition. Competitive economic market brings the opportunities for service industry, which also causes them faced with greater risks and crisis. If a firm operates unsuccessfully, it will be hard to avoid going bankruptcy. Because more and more policies about security supervision and management will be set down by CSRC, many listed companies will have to become "special treatment" or "particular treatment" companies. Even some of these companies will be eliminate from the list of stock exchange. Therefore, in many cases, finding ways to try to construct a set of practical financial indexes for the service industry and identify failing companies as early as possible is clearly a mater of considerable interest to their manager investors, creditors and auditors.On the foundation of reviewing enterprise finance early-warning research at home and abroad, we analyzed firstly the finance early-warning theory origin, namely the enterprise early-warning theory and the enterprise cash flow theory, they constructed the foundation of financial index the system. In order to establish the system and early warning of the financial model for Chinese listed company of service industry, This thesis gave a systematic scientific analysis first for the service industry development, as well as the financial characteristics. Through the analysis of the various indexes which on behalf of the financial risk characteristics, we established an early-warning indexes of the financial system and thus the model to provide early warning basis. The thesis analyzed, for the early warning indexes system of the service industry financial. We choosed twenty-eight listed companies of the service industry with the samples of its 2002-2007 financial statements, to establish the indicator system through the gray system theory. we choosed the indexes that passed the examination to build a early warning system of financial by gray model.The article is on a preliminary exploration to try to establish the early warning index system and the early warning model which are based on Industrial Classification. Considered the characteristics of the industry , we used the gray theory to choose the indexes and to build the model, trying to make the result more scientific and more accurate. According to analysis result, the risk characteristics possess the characteristic of the early warning index, moreover, through the analysis of the financial index type, set up the financial early warning model which adapt to the service industry enterprise to a certain extent.