Research On Financial Crisis Based On Enterprises Life Cycle

With the development of market economy, the competition between the enterprises has become more and more vigorous. Especially in recent years, the enterprises face large competitive pressure and suffer from the unprecedented challenges from the international financial crisis. Because of the financial crisis, many enterprises get into the financial distress, so much as bankruptcy. Enterprise stakeholders pay close attention to the enterprise financial crisis. However, just focusing on results while ignoring the process, traditional financial theories make no contribution to early-warning and prevention. In such circumstances, this paper studies the relation between the enterprise financial crisis and its life cycle stages based on the previous researches, and then it studies the prevention and treatment strategies of the enterprise financial crisis according to the financial characteristics of the enterprise life cycle.This paper combined theoretical and case analysis, qualitative and quantitative analysis to dissertate its theme. According to the characteristics of the enterprise life cycle, this paper studies the finance early warning method on the basis of the enterprise life cycle theory, the financial crisis theory and the financial crisis early-warning system theory. This paper pointed out that in different stages of the enterprise life cycle, it can cause different types of financial crisis because of the different financial characteristics, so we should take different financial crisis early-warning models. It can prevent the enterprise financial crisis from occurring in the first place, and it can help the enterprises to take the appropriate measures according to the different types of the enterprise financial crisis, so that the enterprises can get out of the financial crisis, and make a sustained and healthy development. The research result of this paper is summarized to the following four points:First, from the enterprise life cycle theory, this paper analyzes the types of the financial crisis that the enterprises may encounter in different life cycle, and describe the basic characteristics of the financial crisis in different enterprise's life cycle.Second, this paper analyzes the causes of the financial crisis from the current situation of the financial crisis and the expression form, and then gets early signs of the enterprise financial crisis. Third, with the Z score model, this paper analyzes the financial statements of the DaQing Railroad Company and three other companies, and it points out that the enterprises should take a different financial crisis early-warning model at different stages of the corporate life cycle.Fourth, according to the enterprise finance characteristics and the types of financial crisis in different stages of life cycle, the enterprises should take appropriate financial crisis prevention and treatment strategies based on the contemporary management theory. It plays a positive role in the enterprise financial crisis prevention of our country, and has practical directive sense to the enterprise's long term and vigorous.