The Improvement Research On Indicator Selection Of The Corporate Financial Crisis Warning

Many scholars at home and abroad have carried out numerous studies on the enterprise financial crisis warning. Through these studies, it formed such a consensus:the research on selection of indicators for financial crisis warning is an important aspect of the study. In fact, the researchers are always concerned about how to effectively select the indicators for enterprise financial crisis warning. They have done much work to improve the indicator selection and achieved some accomplishment. Based on the existing research results, this paper will carry out further research on the indictor selection in order to enhance the accuracy and the effectiveness of the enterprise financial crisis warning.Firstly, this paper carries out a theoretical overview on the indictor selection for enterprise financial crisis warning. Secondly, focusing on the existing theoretical and practical issues, the paper proposes the improved scheme on the indictor selection from two aspects. On the one hand, in the scope of the warning indictor, the paper proposes indicator selection ideas based on the Balanced Scorecard Theory, so as to strengthen the comprehensiveness of the choice of warning indicators. On the other hand, in the further screening methods of the warning indicators, the paper proposes the selecting methods based on Grey relational analysis, attempting to overcome the limitations of the Mathematical statistics and try to improve the validity of warning indictor selection. Thirdly, an empirical test based on actual data of forty enterprises is carried out to check the validity of the aforementioned design. Empirical evidence shows that the improvement is valid, and the correct rate is rising from 86.65% to 87.50%. At last, future research in this field is discussed.