High-tech Listed Company Financial Risk Identification Research

Since the21st century, China’s high-tech enterprises growing rapidly, has becomethe important driving force of national economy growth. However,in recent years, kindsof uncertainty factors,such as the international economy continuing to weaken, frequentchanges in national policy intervention,high-tech enterprise market increasingly fiercecompetition, speeding up technology upgrading, internal controls and so on, make thefinancial risk of the high-tech enterprises increases significantly.The case,financial riskout of control result in companies operating in crisis or even bankruptcy has happenedrepeatedly, such as wuxi suntech. The former photovoltaic giants eventually facedbankruptcy,because of financial crisis. Therefore, we should establish and perfect thefinancial risk identification of early warning mechanism, and make operators realize thepotential danger of the company in advance as soon as possible, avoid adverse factors,prompt them to take corresponding measures to the financial risk prevention,which hasbecome a urgently need to solve. According to the characteristics of the high and newtechnology enterprise, to study the financial risk identification, to defuse financial risks,to enhance the level of enterprise financial management,which has important practicalapplication value.Based on the necessity of high and new technology listed companies financial riskidentification, paper elaborates enterprise financial risk related theory, combined withcharacteristics of high and new technology listed companies financial risk, analyse thereasons which causes the financial risk of listed company of new and high technology,try to combine two methods, principal component analysis and Logistic regression,build financial risk identification model based on them, in order to effectively identifythe financial risk of the high-tech enterprises. Finally, selecting sample companies from2009to2012by special treatment in the three years preceding the financial data forempirical analysis. Results show that, through three years of data validation, Logistic regression model based on principal component analysis to the enterprise financial riskidentification maintaine a relatively high accuracy.We can conclude that the model hasa good recognition ability, and has practical significance for guiding the practicalapplication, The model can help business owners and operators to make the rightjudgment,decision-making and assessment,and then ensure the company has thecontinued healthy and stable business activities.