Research On Financial Alert System Of Enterprises

In the paper writing, substantial reference resources in china and abroad have been consulted and data processing is large, which leads to final successful accomplishment of this task. After analyzing the current situation of research on crisis alert system, it finds out that current research on alert system focused on the models of alert system, and research on the financial alert system as a system is still limited and still on the early age, though the latter may has more theoretical value. Due to severe market competition, changeable economic surroundings and disadvantages of the adaptation abilities, innovation abilities, determination abilities, more and more enterprises went bankrupt, and it became a world- wide phenomena. There are so many factors leading to bankrupt, but almost all the bankrupt of enterprises is attributed to the financial crisis. So , establishing the financial crisis alert system to make precaution on financial crisis and risks may give the enterprises a standardized environment of safe financing, sustainable operating, which is a demanding question as well as of a strong realism nowadays.This paper gives the definition of financial crisis first, analyzes its characteristics and points out that there are laws on the occurring, developing of financial crisis. So it can be prevented, controlled and relieved. Then it reviews the fruits on financial crisis research in china and abroad, especially those on the financial crisis distress model. Some researchers establish several financial crisis distress models by using different technology and methods. Among those the most influential one is the Z calculation model by Altman. In the research, it is found that multivariable is better than single variable model in forecasting. It analyzes the effects of Z-model in china, and found that although it achieves good results abroad, the results of applying them in china is not practical here due to juvenile market economy, imperfect corporate governance, severe insider control, ubiquitous low asset productivity, low payoff and lack of operation capital. So when we determine financial index and critical point of financial crisis, develop financial crisis alert depress model, we can not just copy one. In the second part, it analyzes the basic theory of financial crisis alert system, discusses the intention and function of the system, and makes a comment on the qualitative analysis method and quantitative analysis method of financial crisis alert system. Then it describes the thought way of constructing the financial crisis system, and develops the theoretical frame of financial crisis alert system. It is regarded that there are four subsystems in financial crisis alert system, say, financial crisis alert information system, organizing system, financial crisis risk analysis and monitor system and the last one financial crisis alert possessing system. Among these subsystems, financial crisis alert information system is the basis and precondition, the organizing system is the exertion body, and financial risk analysis and monitor system and the financial crisis exertion system is the core and key point. In the third part, the construction of financial crisis alert system is emphasized and three models are built. The establishment of index of financial alert system is the key point in developing the financial crisis alert system. In this paper, there is a financial crisis alert system consisting of 15 financial index based on the introduction of results of other researchers and the comprehension of the author. And the determination of critical point and the working procedure of the financial crisis alert are analyzed respectively. Finally it introduces the preparation work that may guarantee the effective implementing of the financial crisis alert system.