Research Of Financial Crisis Warning Of Listed Companies On Growth Enterprises Market In China

ABSTRACT:On Oct.30,2009 the stock of the first group of 28 companies can be traded on the list of Growth Enterprise Board of Shenzhen Stock Exchange. It marks the open of GEM of China. The Gem is targeted to provide listing and financing services for the small and medium-sized hi-tech enterprises that is in growth, have a certain scale and profitability. Although these companies grow rapidly, most of them are in growth with small scale and unstable performance. The corporate governance structure is not perfect in these companies. Family-run phenomenon is serious in them. Meanwhile they are in emerging industries with intensive competition and high market risk. All these have added the possibility of financial crisis of them. And it will affect the development of the company. Thus strengthening financial crisis warning and predicting future financial status of gem companies have become the urgent problem in the research of gem listed companies.This paper mainly adopts qualitative analysis and quantitative analysis, and empirical analysis and case analysis combination of research methods. This paper using descriptive methods to presents achievement of financial crisis warning. It uses empirical method to analysis the first 28 national gem listed companies to test the effectiveness of our early warning model of gem companies, and makes specific analysis of pre-warning of gem listed companies of our country with case research.This article contains seven parts. The first part is as the research background, the research present situation, research purpose and meaning, research thoughts and methods. The second part is the basic theory of financial crisis warning, including definition of financial crisis, characteristics, formation reasons, definition and function of financial warning. The third part is the financial crisis analysis of our country gem listed companies. This part concretely analyzes the gem market situation, characteristics of gem listed companies and the reasons of the financial crisis. The fourth part is empirical research. It selects Z score, F score and Taiwan multivariate model to made empirical analysis about the 28 gem listed companies, to test the applicability of the model, and to analysis the reasons of the empirical results. The fifth part is case studies. According to the previous empirical analysis results, I choose a listed company named Ji Feng farm machinery as the case company. Then I analysis the potential causes of the company financial crisis. The sixth part gives some suggestions to our country gem company financial crisis warning. The 7th part is full text summarizes and prospect.