Positive Analysis On Financial Risk Pre-warning Of China’s Listed Textile Enterprises

The survival and development of the textile enterprises face severe test with the declineof the needs of international market and the acceleration of the transformation andupgrading of the enterprises; in the meantime, the existence of the financial risk is inevitablebecause of the complexity, variation and unpredictability of the objective environment. Thetextile enterprise has many kinds of risks; there are financial risk and non-financial risk. Butevery kind of risk will sum up as financial risk finally, and financial risk is the mostcomprehensive reflection of the enterprise’s risk.There is a transition for one enterprise from financial risk to financial crisis, because therisk of the enterprise has different quantitative properties as in different stages when the riskof the enterprise from small to big, from quantitative change to qualitative change. So, if webuild quantitative financial risk pre-warning model to send risk signal and make relevantstrategies, then it will make the guarantee for the enterprise to prevent risk, to operate safelyand to realize its long-term and effective development. And this paper is written in this kindof background.Firstly, this thesis makes a definition of the financial risk, and then this thesis will makelisted textile enterprise as the object of study, and analyze the reasons, manifestations andmeasurements to prevent risks of the financial risk of this kind of enterprises. All these willmake a foundation for the pre-warning study and will make readers realize the necessity andurgency of the study of the financial risk pre-warning of the textile enterprises.Then, this thesis utilizes PCA (principle component analysis) of statistic analysis forfinancial risk pre-warning of the enterprise, and constructs the model of the financial riskpre-warning of the listed textile enterprise. It concludes principle component pre-warningmodel and basic financial index pre-warning model. And the results of the data give thewarning value and this paper also makes a test for the validity of it. This section is the mainpart of this paper and it is also the innovative point of this paper.Lastly, this thesis makes a conclusion for the pre-warning model of the listed textileenterprises. And it also raises the shortages of this thesis and put forwards the expectationsfor the future study.