Our Corporate Financial Early Warning System Research

With the quickening of global economic integration, any enterprise is liable to encounter financial crisis in a competitive world. The enterprise would fall into difficult position, even the example of declaring bankruptcy, if the crisis cannot be detected punctually and released effectively. Therefore, the ability to resist risks would be improved greatly if the omen would be discovered early and some anti-measures would be taken. In a word, the study of financial early-warning system is of significance to whether the development and survival of enterprises or the improvement of the whole economic environment.The dissertation introduces the background and the theory points of enterprises'financial early-warning system, and it makes the comparison between the quantitative analysis and the qualitative analysis of financial early-warning model. It tells readers five parts in detail, including the design of operation structure, the collection and transmission system of financial information, the financial monitoring ratio system, the crisis monitor of routine business and ways of dealing with financial crisis. Then it makes the proposal to the development of the financial early-warning system in China by analyzing the present status of setting and applying.The innovations in this dissertation are as follows:1. This paper puts forward a more reasonable conception of enterprises'financial early-warning system, which is called"four combinations". The four contents are: to combine the qualitative analysis and the quantitative analysis; to combine the static analysis and the dynamic management; to combine the overall planning. Based on that, the paper classifies the financial early-warning system by three criteria.2. The paper designs a complete financial early-warning system of enterprises. It discusses the detail of content, methods and steps in financial early-warning system.3. This paper improves the ratio system of financial early-warning system and pays attention to the cash flow ratios in analysis.