Search For The Early-Warning Method For The Business Enterprise Finance Crisis On The Basis Of Cash Flow Information

This paper aims at build up early-warning method for the business enterprise finance crisis on the basis of cash flow, in order to overcome the weakness of the current early-warning method which based on Accrual Basis Accounting. On the foundation of the past result, this paper collected retated cash flow index of 100 listed companies, and take this as the foundation to set upearly-warning model.This paper involves four chapters. In the first chapter, explained the background of the research and reviewed domestic and international early-warning theory. In the second chapter, elaborated the foundation theories and basic methods of the early-warning theory for finance crisis, define the definition of the finance crisis and analyzing the reason of the finance crisis. In chapter three, choose the sample and related cash flow index, take this as the foundation to set up the early-warning model, and carry on the examination to the model. In the last chapter of the paper, introduced some means to get away from the finance crisis.