Study On The Bankruptcy Possibility Of Listed Companies In Changsha Based On Altman Z Scoring Model

Nowadays,the economic environment which listed companies confronted with is mor e and more complicated both in domestic and abroad.The completion becomes fiercer and fiercer accompanied with more and more risks.As a result,enterprises are at the edge of ba nkruptcy.That's the reason why I choose the research topic on the bankrupt possibility of listed companies in Changsha.Primarily,this paper introduces the theoretical research on financial early-warning bot h in domestic and abroad,selecting the Altman Z Score Value as the research model of fin ancial early-warning.Secondly,we collect the financial data of Changsha listed companies in the recent 8 years,applying the Altman Financial Early-warning model to calculate the z-score value,analyzing the problems Changsha listed companies facing and dissecting the reasons.In chapter 4,targeting at the five related indicators,we carry out sensitivity analy sis and critical point analysis.In the fifth chapter,it finds out the problems of Changsha list ed companies such as lack of circulating funds,and low return on total assets,then analyze s the internal and external causes,thus pointing out the risk points of these companies with high bankruptcy possibility,and some suggestions to prevent risks are put forward,so as to protect the interests of investors and creditors,reduce the cost of enterprises and achieve t he purpose of preventing bad results.To be concluded,this paper makes a preliminary exploration on the early warning mo del and conducts a sensitivity analysis on the Z value,aiming to acquire the key factors aff ecting the Z value based on relevant systems and the sensitivity of Z values,then to establi sh a financial early warning system which can prevent the company from bankruptcy,redu ce the company's losses and solve the company's financial crisis.