A Research On The Enterprise Financial Risk Warning Model Introduced Non-financial Indicators

With the progress of the times and rapid development of economy, the environmentof companies is increasingly diverse and complex, economic globalization has brought alot of business opportunities and benefits, but the risk companies facing is also increasing,and gradually diversified. Once an enterprise financial risk occurs, it will make the riskspreading rapidly to its shareholders, creditors, management and other stakeholders, andeven a certain impact on the economy. So how to early warn the financial risk timely andaccurately becomes a hot research in academia and major companies. Based on theimportant role of the financial risk early warning on business and the economy, wechoose this topic for analysis and research, trying to optimize the financial risk earlywarning model to enhance the accuracy of corporate financial analysis warning.In this paper, we choose ST listed company as a research object, select43enterprises with the financial risk and43paired enterprises with normal business in2012and2013, the non-financial indicators are introduced into financial risk early warningmodel, comparing index prediction accuracy of the model based on purely financialindicators and the model introduced non-financial indicators, to study the impact and roleof non-financial indicators to the financial risk early warning model.Firstly, in the introduction section of this paper it introduces the researchbackground, describes briefly relevant literature on the financial risk early warningmodel, and presents research content, methods and innovation of this paper; basic firstpart-theory of the financial risk early warning research, introduces all levels of financialrisk early warning theory; second part-analysis and evaluation of the existing financialrisk early warning model, introduces the existing financial risk early warning model indepth, analyzes advantages and disadvantages of each financial risk early warning model,and points out the limitations of the existing financial risk early warning model. The thirdpart-the impact and significance of the non-financial indicators on the financial risk earlywarning, describes several important non-financial indicators and their effects on thefinancial risk early warning, and points out the significance of the introduction ofnon-financial indicators. The fourth part-empirical analysis, through significant test andfactor analysis of the sample data, establishes Logistic model, after back testing, comparing index prediction accuracy of the model based on purely financial indicatorsand the model introduced non-financial indicators, at last, it summarizes the researchfindings, rationalization proposals and points out the limitations of this article.