Research Of Financial Crisis Warning Mechanism In Medium-sized And Small Enterprises 8

The global financial crisis has been two years ago, but the global economic recession is still in continuous. The financial crisis has brought unprecedented business risks to China's listed companies, especially to the small and medium listed companies at the initial stage. It is not long that Small and medium sized listed companies in China begin to manage risks. Many enterprises lack the awareness of risk management. In finance, investment, control and finance, SMEs are deficient. Market environment in the past, the negative impact of risk management the company ignored may be small. However, in depressed economic environment, the failure of a business investment decision may cause lethal effects to the company. Therefore, how to adapt to environmental changes, to predict the financial crisis in small and medium sized listed companies accurately, is a serious problem placed in front of managers.In this paper, based on the theory of SMEs and the research about SME financial early warning mechanism, with the actual operation of SMEs in China, the writer establish a model of SME financial risk early warning, and put forward some thoughts and suggestions on the implementation of this model. The whole paper is divided into five chapters:In the first chapter, the writer describes the ideas, the content and methods of the paper, and introduces the main contribution and the weakness to the paper.In the second chapter, based on the literature review, the writer reviews the theory of financial early warning models. Then, defined the concept of small and medium enterprises, combined with the actual situation of SMEs in China, the writer analyzes the existing model of financial early warning.In the third chapter, the writer proposes function of the financial early warning model and the principle of building the model. Finally, the writer describes the general procedure of SME financial early warning model. In the fourth chapter, the company, HUNAN TIANRUN ENTERPRISES HOLDING CO.LTD is the Warning example for the paper. Combining method of model and chart analysis, the writer establishes a financial early warning model for SMEs in China.In the last chapter, the writer points out that the shortages of paper, and proposes improved method proposed, and look forward to the future development.