Study On Financial Risk Early Warning Of Energy-Saving Environmental Protection Industry Listed Companies

With the deepening of the reform and opening up, China’s economic developed rapidly, with the accelerating process of urbanization and marketization, environment problem increasingly outstanded, the government also began to realize the importance of protecting the environment. Since twenty-first Century, The global environmental protection industry has entered a rapid development track, has gradually become an important force in the national economy growth. Therefore, how to prevent the risk of energy saving and environmental protection industry, it is particularly necessary for early warning of energy-saving environmental protection industry listed companies financial risk, this is helpful to the company’s financial risk monitoring and control, and take the corresponding control and prevention measures of energy saving and environmental protection, avoiding unnecessary economic losses the company. In addition, the effective financial risk early warning model for the perfection of the capital market, improve the profitability of enterprises and social capital using efficiency also has certain guiding significance and application value. This paper firstly reviews the relevant literature on the research of enterprise financial risk and early warning at home and abroad, expounds the basic theories of financial risk early warning, risk management theory and early-warning theory, introduces the development status of China’s energy-saving environmental protection industry, and summarizes the influence factors of energy saving and environmental protection industry listed companies financial risk and its characteristics. Secondly, this paper selects a sample of150observations from50energy-saving environmental protection industry listed companies from2011to2013, starting from the profit ability, debt paying ability, development ability, assets operation ability and cash flow ability five aspects, through factor analysis of financial risk on the energy-saving environmental protection industry listed companies were evaluated. Finally, based on factor analysis, this chapter introduces Logistic financial risk early warning model, according to the energy conservation and environmental protection industries listing Corporation financial risk discriminant results establish risk early warning, which provides prospective warning information risk.Through the empirical study, we draw the following conclusions:firstly, the main factors to evaluate the financial risk of energy-saving environmental protection industry listed companies in China:the development of risk factors, risk factors of cash flow, asset security risk factors, risk factors of profitability, liquidity risk factors and debt risk factors, cash flow risk factor is the most important factor. Secondly, the distribution of financial risk of different kinds of energy saving and environmental protection industry listed companies has the difference; thirdly, China’s energy-saving environmental protection industry listed companies’financial risk management and management level is relatively low, the stability of operation need to be improved. Fourthly, relative to other energy-saving environmental protection enterprises, the degree of sewage treatment company market the highest development level is higher, the financial risk is relatively low. Fifthly, the majority of energy-saving environmental protection industry enterprises in China have a big financial risk, it is related to the degree of the industry characteristics and management attention, urgently need to introduce financial early warning mechanism.