Enterprise Financial Risk Measures Based On The Z-score Model

For the fierce competition in the market, survive is difficult to enterprises. How to survive, in the survival and development after the company had to face a serious problem. Enterprise management and corporate stakeholders caught an urgent need to find a company's financial position can be measured, to identify potential business risks that may exist on the potential financial risks of timely and accurate forecasts and effective to avoid sliding enterprises way to the abyss of bankruptcy.In this paper, the financial risk and financial risk measure based on the concept was put forward to introduce the domestic and foreign financial risk measurement methods, and highlights the contrast in this paper to analyze the two models: Z-score model, F-score model. Meanwhile, the two models to test the applicability of our model and the advantage which, in Shanghai China 39 selected financial data of listed companies, the analysis of these two models, the corresponding results.In the analysis, the first 39 listed companies will be divided into two groups, namely, the SSE 50 index shares and ST companies. Which shares the SSE 50 Index 23, ST 16 companies. Divided into two groups were calculated after these 39 years the company can obtain the Z value and F value. Then minutes after the first general approach, for the Z-score model and the F-score model, each model shares on the SSE 50 Index company samples and ST samples were analyzed by the two companies as an example since the two models discriminant analysis, in order to determine the individual relative to the sample in terms of which model is more effective, the final departure from the overall study sample of the two models, two models for the study of the applicability of what kind of businesses stronger. Want to be able to use such models for financial risk measurement applications to provide help. The empirical results show that, F-score model in the applicability of our listed companies more some better than Z-scores model. At the same time in terms of prediction accuracy, F-score model predicted and the prediction results broadly consistent with the foreign. In comparison, China's use of F-score of listed companies for financial risk measurement model Z-score model than the more appropriate.