Research On Financial Crisis Early-warning Of Small And Medium-sized Enterprises

As one of the most vigor and vitality group in our country, small and medium-sized enterprises (SMEs) have already become the most important part of the national economy. However, along with more and more intense of the market competition, the survival and development of the SMEs are facing a much sterner challenge than before. Meanwhile, more and more SMEs fallen into financial crisis or applied bankruptcy. So, how to prevent the emergence of SMEs to ensure them running well is not only the problem for the superintendents of SMEs have to face, but also has significant meaning.This paper makes a research on the financial crisis early-warning of SMEs on the basis of previous domestic and overseas theory of financial early-warning, and combined with the own features of the SMEs in our country. This paper is composed of six chapters. Chapter one is the overview of the paper, including research purpose and significance, literature summarization, research thought and basic framework. This part lays the foundation of the further study in the following context. Chapter two introduces the current financial status of SMEs in China. And then analyzing the process and reason why financial crisis happened to SMEs. Then sum up the functions of financial crisis early-warning. Chapter three analysis and evaluate the representative financial early-warning model from both qualitative aspect and quantitative aspect. And confirm the model which this paper uses and draw forth the following discussing on efficiency coefficient method. Chapter four introduces the traditional efficiency coefficient method, and evaluates its deficiency. Then put forward an improved model combined with the object of this paper. Chapter five studies a empirical research through both vertical and horizontal aspects so that verified the validity of the improved model on early-warning of SMEs. Chapter six summarizes the full paper and makes a prospect of further study.Above all, this paper aims at carrying out early-warning of SMEs in our country through improved efficiency coefficient method. So that helping SMEs assess their financial statues to promote the sustained and healthy development of them.