Research On Financial Risk Early Warning Of Listed Companies In China's Electrical Equipment

Enterprise management is divided into successful management and early warning management,and early warning management is an important part of enterprise management.The financial indicators have the feature of forward-looking,general and evaluation,so they make high correct rate of financial early warning,and thus become a breakthrough in the field of enterprise early warning management.In the current economic environment,the effective application of financial early warning research is very important for enterprise to achieve the healthy and sustainable development.The electrical equipment industry is an important industry of the national economy.In the face of the pressure of our domestic economy,the survival and development of enterprises are challenged.The level of China's electrical equipment manufacturing technology level is not high.Compared with the international advanced level,there is a big gap.The development of electrical equipment is still in the transition from mechanization stage to intelligent stage,and it requires a lot of money to maintain business healthy and rapid development.If lacking of financial risk forecast in this stage,electrical equipment business once caught in a financial crisis,they will suffer heavy losses,or even bankruptcy and liquidation.Electrical equipment listed companies establish financial early warning model is very important to prevent the occurrence of financial crisis and ensure the development of enterprises.In addition,China's electrical equipment industry has unique financial characteristics and industry characteristics,but the traditional financial early warning research is mainly about the manufacturing sector of all listed companies,and it is not applicable for the electrical equipment industry.So it is necessary to consider the applicability of early warning indicators and early warning models in China's electrical equipment,so as to carry out targeted financial early warning research and draw a reasonable,objective and accurate early warning conclusion.Based on the results of the existing financial early warning research,firstly,this paper defines the concepts of financial risk,financial crisis and financial early warning,and expounds the theory of financial early warning.Secondly,this papper analysises the feature and applicability of the method of constructing the existing financial early warning model,and uses the selection of principal component analysis methods and multiple discriminant analysis methods.The 103 A-share listed companies of China's electrical equipment enterprises are used to be as research sample.Based on the relevant principles to select the financial indicators,the electrical equipment listed companies' financial system is constructed with 23 Financial indicators.Then,using the principal component analysis method,nine principal components of the financial early warning index system are extracted,so the financial evaluation of the listed companies can be got.As the financial equipment is divided into five grades in bank.So the paper divides these sample companies into four grades—no crisis,low crisis,middle crisis and high crisis.The method of multiple discriminant analysis is used to establish four kinds of early warning model formulas.Finally,the discriminant effect of the model is tested.The test results show that the correctness of the model is 87.4%,which has a good financial early warning effect on China's electrical equipment listed companies.