Early Warning Of Financial Crisis About China’s Listed Companies

With the rapid development of economic globalization, China’s listed companies are facing increasing challenges at home and abroad, and are subject to financial distress. So it is of great significance for managers to monitor, prevent and control financial crisis by building a perfectly reasonable financial crisis early warning indicators of an early warning system and the strong accuracy of the financial crisis g warning model.Firstly, the paper introduces the background, significance analysis, the definition of the financial crisis and the studies on the financial crisis early warning, and then defines the financial crisis in this paper, explains the causes of the financial crisis and the basic theory about financial crisis warning. Then relying on the theoretical basis, the paper constructs25primary financial early warning indicators in solvency, operational capacity, profitability and cash flow ability. Then selecting three years financial data of about27ST companies and27non-ST companies for sample, this paper carries on significance analysis by non-parametric test, and ultimately gets21financial indicators. Nextly, the paper uses Entropy and the logistic regression models of Financial Crisis Early Warning to forecast, and calculates the integrated entropy values and logistic regression probabilities. And the paper uses the integrated entropy values and logistic regression probabilities to determine the health of the financial situation of enterprises for establishment of early warning mechanisms. The research shows that integrated entropy values and logistic regression probabilities are meaningful and forecasting for determining the health of the financial situation of enterprises, and the logistic regression model is more accurate.