Manufacturing Listed Companies' Financial Early Warning Model

Since the late period of 20th century, the financial globalization andthe rapid expansion of the credit market has become a trend. Thereforethe company's financial management practices highlight the growingdemand for risk management tools. As an important risk managementtools to send warning signal to identify and predict the company'sfinancial crisis for investment managers, Financial forecasting model hasattracted much attention, and gradually became one of the hot issues inthe company's financial management. The research of efficient financialfailure warning model to find these hidden dangers undoubtedly has agreat theoretical and practical significance.First, this paper points out financial implications, functions andfeatures for the necessary analysis, and reviewed the researches on thefinancial distress prediction model at home and abroad. In the EmpiricalStudy, 336 listed companies in the field of manufacturing industry areselected as research samples, use factor analysis and artificial neuralnetwork to get manufacturing sector forecasting model. Empirical studiesindicate that the two models have predicted better results, the predictionaccuracy of neural network models was slightly higher than factoranalysis.