Application Research Of Financial Risk Early-Warning System Of Listed Company

The fiercely competitive market economy provides a wide business stage for enterprises on one hand. On the other hand, it also has countless hidden torrents and shoals. If the financial management problems can be identified as early as possible, then the signal would be given early to predict the fate of the enterprise. It is very important to take effective measures to prevent the financial crisis in its beginning, to improve the management and prevent danger. So the study of financial early-warning system not only counts on theory, but also gives valuable guidance to the financial management practice.As for companies in China, with the joining into WTO of our country, they encounter challenge of multinational companies abroad. In order to survive and develop, the companies in China must establish financial early-warning system. It can correctly forecast and prevent financial crisis for the companies, monitor the quality of listed companies and the risk of security market for government management departments, protect normal rights and interests of investor and creditor, reduce shock of security market and promote the benign development of listed companies, which is helpful as regards the security both the economy and society.Consider to the condition, this text analyzes the framework and mechanism of the finance module. This paper analyzes financial crisis situation and application situation of financial early-warning system in China with the guidance of basic theory of financial early-warning system and science theories of accounting, financial management, focusing on the establishment and perfection of financial early-warning system of listed companies in China, using the normal analysis and demonstration analysis methods. The analysis shows that financial situation of listed companies in China is not good generally, some shares are specially treated at present. Though some other shares are not specially treated, they show symptoms of financial crisis in some aspects. Therefore, listed companies in China are essential to establish and perfect financial early-warning system.The text can be divided into four parts mainly: The first part introduces the aims and the meanings of the research; The second part probes into the basic theory of financial early-warning system. It includes that financial crisis, financial risk, the relations between financial risk and financial crisis, the function of financial risk early-warning system, the basic steps of financial risk early-warning system, the analytic way of financial risk early-warning system, in detail analyzing theoretical basis of financial early-warning module ; The third part establishes financial risk early-warning system model; The fourth part applies financial risk early-warning system model with listed company in China. It shows that the effects of financial risk early-warning system model are better.