Research On Relevant Problems About The Financial Early-warning System Of Enterprises

With the deepening of Chinese market economy system reform and the rapid development on the domestic capital market, the complexity and the incertitude of the economy field is increasingly becoming obvious. It is a common fact that more and more enterprises are down to bankruptcy and liquidation because of financial distress. Financial crisis is real a threat not only to the existence of enterprises, but also to the investors, creditors and the interest of the country. If we can establish an effective financial early-warning system for enterprises to find out the premonition of distree, then we can take some measures, such as crsis management, to control it in time and the enterprises will improve there ability of resisting risk and keep away the financial crisis.After the reasons leading to financial distress are analyzed in my article, I use quantitative analysis to construct two models, the Logistic model based on PCA and the Fisher model to judge whether a company has met with financial crisis or not. After selecting 35 listed corporations which were in the financial crisis and 67 listed corporations which were not in the financial distress as the sample companies, I use the statistic software, SPSS, to analyze these companies according their opening financial reports. At last I compared the data of Logistic model based on PCA with the latter, and got an approving result.