The Study On Financial Warning Of Listed Companies In Machinery Manufacturing Industry

Financial distress will do harm to the benefit of listed company and its investor. So it is important to prevent the financial distress.According to the financial warning theory, selecting proper financial indexes is the first step of establishing the financial warning model. But the financial indexes are affected by the economy, stock market and the characters in itself. In order to improve the quality of financial indexes, we must control the effect. At the same time, it is necessary to study the selective standard and think about the ST which makes sense. It will help us to choose the rational and effective financial indexes. Based on these study, listed companies in mechanism manufacturing industry are chosen. The article established two models by using the financial datum of manufacturing and quantitative method. After testing two models, a satisfied conclusion could be drawn. By comparison, the logistic model is superior to linear regression model. So these models are able to forecast the financial distress well. I think this paper have the theoretic and practical value.