Empirical Study On The Type Of Industry Listed Companies' Financial Early Warning

Industrial enterprise is different from other industries because of their own long time investment, large amount and slower recovery of funds, thus the industrial enterprises are faced with relatively large financial risk. The international financial market has become uncertain in recent years, the industrial enterprises are faced with larger financial crisis, so setting up the financial early-warning system is very necessary to the industrial enterprises.This article selects100listed companies from the industrial sector, which are treatedspecially or warned to be delisted in2010-2012from the Shanghai and Shenzhen stockmarkets. Use72training samples to build the financial crisis early warning model. Use theremaining28samples to test the model. The sample data is the mean of three years databefore it is special treatment or delisting warning. Based on the principle of selectionindexes, the characteristics of industrial sectors and data availability, I select20financialindicators. Use D test, W test, two independent samples Mann-Whitney U test, factoranalysis and binary logistic regression analysis to establish the type of industry listedcompanies’ financial distress prediction model.Empirical studies have shown that the effect of the financial crisis early warningforecast discriminant model in this paper is better. This model has the ability to identify thefinancial crisis in advance. The most significant effect on the model is Return on TotalAssets Ratio.