Research On The Financial Early-warning Of The Listed Companies

The research on financial early warning of listed companies is a very important part of enterprise management.It not only has high research value,but also has great application value in practical application.With the development of China's capital market,the number of Listed Companies in China has risen sharply,meanwhile the number of enterprises that have facing financial crisis has gradually increased.The development of financial crisis has periodic characteristics,if the financial crisis is not properly handled,the financial crisis will gradually increase.Understanding the development of the financial crisis will help the listed companies make better decisions facing the financial crisis.If we can understand the financial crisis through technological means at the early stage of financial crisis,it will help enterprises to avoid a lot of losses caused by severe financial crisis.Out of the application value of the financial early-warning model,the writer chose financial early-warning as the main research direction of this paper.In order to promote the focus on financial early-warning,enhance risk consciousness,this paper starts from the definition of the financial crisis.At first I combed the research results of financial early-warning,then made a brief introduction on the connotation,causes of financial risk and the function and common-used model of financial early-warning.After that,this paper collated the problems existing in the application of financial early warning in China's listed companies,the reasons of these problems includes no concern about the underlying causes behind the financial risks,the lack of overall planning of the group,and so on.In order to verify the effect of financial early warning in practice,at the same time,provide financial early warning for enterprises,this paper selects data of Yili company in 2006-2010 to conduct financial early-warning analysis.The results meets the expectation,which means the financial early-warning model can be used to predict the financial crisis well.Combined with other financial index analysis,the main reason of the financial crisis a large number of short-term borrowing and retirement of inventory.In the end,this paper also points out the future research direction.