Listed Manufacturing Companies Empirical Study Of Financial Warning In China

With the development of national economy, more and more companies choose public financing, which makes sharing the risks inherent in listed companies to ordinary shareholders and securities investors. How to avoid risks, guiding people to the right investment to become an important topic in theoretical researchers. From recent years, Shanghai and Shenzhen listed companies and other businesses at home and abroad Analysis shows that business failure often stems from a weak financial links. Financial management is the core of enterprise management, enterprise central capital once to be damaged will lead to deteriorating financial situation, and trigger a financial risk, financial risk if the enterprise can`t afford to increase the limit, the comprehensive crisis will ensued, and then lead to business bankruptcy. Therefore, the establishment of financial risk assessment and early warning systems, timely prediction risk, and take appropriate measures to eliminate risk in the bud stage to become a modern enterprise financial management is an important content.Since China joined the WTO turned sharp increase in exports, manufacturing has been an unprecedented development. Manufacturing has become the basis of our national economy. However, as China's manufacturing industry`s weaknesses also will be revealed. Many Chinese export-dependent manufacturing enterprises are facing tremendous pressure, many companies went bankrupt. To strengthen financial management, not only make the company through a difficult period of financial crisis, but also for the development of powerful enterprises in the future support.Chapterâ… introduces the financial early-warning model for building the background and significance, then defies the concept, finally, the structural context of this article, and innovation. Chapterâ…¡recalls the main five financial early warning models relevant literature, and for each model were reviewed. Chapterâ…¢, respectively, into the design of financial distress prediction model. Chapterâ…£the empirical analysis of two models, the study found in the Logistic model in three years, net assets per share, asset turnover, basic earnings per share, audit opinions is associated with the company to be ST . The EVA method is more suitable for the long-term early warning. Finally summarizes the full text, in general, Logistic Model is better.