The Financial Risk Identification Of Listed Company

With the continued rapid development of modern economy, the economic globalization are growing, especially in recent years, the global economic crisis makes Chinese enterprises facing increasing competitive pressure. As the traditional financial data are based on accrual occurs, the authenticity of the data are discount and cannot accurately measure the financial risks which the enterprises faced; in contrast, the cash flow data under the cash basis are more objective, real and difficult to be manipulated, so it plays an increasingly important role in the corporate financial analysis and evaluation. In the market economy environment, it's essential to the Companies which have good operation of the business cash flow, even influence the survival and development. In the entire process of business management, the management of financial risk and the consolation of cash flow are interactional: in order to reducing or avoiding the occurrence of financial risk, the only way is to control the cash flow; in turn, as long as the financial risk to do the monitoring, prevention and control, the business situation will improve significantly, which would also help the enterprises to obtain adequate and efficient cash flow.In this paper, the theory of financial risk is early warning to start, then introducing the concept of cash flow and analysis the impact of financial risk on the business and Elaborated on this basis, the warning indicators of financial risk on cash flow-based are more feasible and more favorable. The financial data all are based on the China's A share market listed companies and the samples come from the companies which were first screened ST in 2009, with using matching sample design method, 27 ST companies and 27 normal matching companies are selected as the research object, and finally there're 12 traditional financial indicators and 9 cash flow index come to the model to predict. In the application of Logistic regression model for empirical comparative analysis, it was found that the integrated cash flow index model whose precision and efficiency are better. This paper studies cash flow and financial risk identification together to establish a new analysis model that aims to broaden the analysis and identification of the financial risks of vision. In addition, the research process emphasis on the actual situation of China's enterprises, it has the important function and meaning to strengthen operating funds management and improve the operating ability of companies.