Research On Financial Risk Early Warning Of Listed Companies

The financial risk is a phonomenon of objective existence in the economic activities,which received widespread attention. In recent years, due to lack of financial riskmanagement system, many listed corporations operates with financial crisis, which threatenscorporate governance, lead the corporations to withdraw from the market and even bankrupt.As the financial situation of listed companies in China is particular in some aspects, thetraditional risk management theory can not be used to solve the problem directly. That is thereason why this paper select financial risk control as the topic of master thesis. The financialrisk management of a company, it is necessary to analyze the company to produce the reasonsof the financial risk and identify and measure the financial risk. On the basis, put forwardreasonable and effective control strategies to avoid and disperse risk. Financial risk earlywarning can send out early warning signals in time at the beginning of financial crisis, is animportant means of financial risk management.Firstly, this thesis sorts out domestic and foreign scholars’ literatures on financial riskearly warning, and this helps understand the history and development of financial risk earlywarning theories. Secondly, this thesis presents the concepts of financial risk, financial crisis,financial risk early warning and the relationships among them. Then writer introduces kindsof financial risk early warning methods in detail, Including qualitative and quantitativeanalysis methods. Thirdly, describes the contents and methods of financial risk identificationand financial risk early warning current situation of China listed companies, then to analyzethe problems of China listed company in the financial early warning process. Finally, thispaper chooses G pharmaceutical Co.,Ltd as the sample enterprise. Related financial indexesare also used to quantitative analysis the solvency ability, profitability, asset managementability, development ability and cash flow of G company. The financial condition of Gcompany is also judged by Zhang Ling’s Z-score model, Then writer combines the qualitativeanalysis results to evaluate the financial risks that A company faces, and raises somecountermeasures.