Case-Based Reasoning Corporate Life Cycle Financial Distress Methods

Development of market economy is double-edged sword, on the one hand for the enterprise won, including credibility, efficiency, market share, etc., interests, on the other rapidly changing economic environment for enterprise development will be planted various potential financial crisis. Especially in recent years, the financial crisis spread to the national sport to all companies have brought tremendous pressure invisible, enterprises will face more severe challenges. The financial crisis different from past, nowadays, its impact and the deep financial crisis, companies are no longer very few financial crises, but everywhere. Current financial crisis and its early warning has not only become the focus of heated debate topic of public opinion, but also has become and almost all enterprises are flocking to attach great importance to the issue.This paper uses both concerned with the theoretical analysis of case-based reasoning in turn with the principle of combining both a qualitative and a quantitative analysis of the principles. Relying on enterprise life cycle theory and the related financial and corporate finance theory and financial crisis early warning theory theoretical basis, in accordance with the enterprises of different lifecycle exhibit different characteristics, and financial aspects of the different characteristics of the financial crisis and its early warning Dialysis them in depth and made a financial crisis early warning model.Financial crisis early warning model can be carried out of the crisis before the crisis early warning, leaving plenty of time to deal with the more corporate crises, crisis help companies find signs of early, early treatment, early out of the crises and difficulties, and promote a virtuous cycle and health can be sustainable development.This research work is mainly reflected in the following aspects:First, the corporate life cycle as the starting point, in relying on the theory of corporate life cycle under dialysis in different business enterprise life cycle process may encounter different morphological financial crisis, but also pointed out the differences in the corporate life cycle differences that occur during the financial crisis and its main characterization.Secondly, China’s enterprises are prevalent in the current financial crisis status quo, analysis of the financial crisis in the performance of these enterprises, thus summed up the root causes of the financial crisis triggered by the financial crisis caused by the reasons for the interpretation of results triggered enterprise financial crisis, the key issue.Finally, according to the modern financial management theory, for different enterprise life cycle different financial crisis presents targeted prevention mechanisms and treatment strategy, which for our country in different companies in terms of corporate life cycle has a very important practical meaning and positive role in promoting the longer a short period of time in the future for the scientific development of China’s enterprises up an important reference.