Listed Companies' Financial Crisis Early-warning Model

As China joins WTO, Chinese enterprises will face greater opportunity and challenge. Manage and suppose continuously in the traditional financial theory that becomes flexible gradually, the uncertainty that enterprises face increases day by day. Enterprises result in managing and getting into a difficult position because of the financial crisis, even the example of declaring bankruptcy is of common occurrence. In fact, it is a course worsened progressively that enterprises get into a difficult position, this usually could been found out from the financial affairs.In right time, accurate carrying on pre-warning analysis to enterprise's financial affairs is the objective requirement for the market competition system, it is the essential guarantee of enterprise's survival and development too. Financial early-warning system can reach the other shore to play a role in escorting for enterprise's victory. Constructing the model of pre-warning in financial crisis has a profound significant to predict and reduce the financial crisis. It'll improve the management level of pre-warning. At present, the scholars both inside and outside the country study the model of pre-warning in financial crisis, they focus on the constructing of the model about Multiple Regression Analysis, Multiple Regression Analysis and Artificial Neural Network.There are two main purpose to write this thesis: Firstly, pre-warning in financial crisis has a profound significant to predict and reduce the financial crisis, it can help investors to avoid risk when they make decisions; Secondly, helping those enterprises that are in a difficult position to build financial pre-warning system to solve their problem.This thesis has five parts: The first part is about analysis background, purpose, analysis methods and so on; The second part summarizes the domestic and abroad achievements empirical study on the basis of analyzing and concluding these results. The third part analyzes the financial crisis and how to adopt the key factors. The forth part is the main part of the thesis, this part uses the method of Principal Component Analysis and the data of listed companies to construct the model of pre-warning in financial crisis. The fifth part is about the advantage and disadvantage of pre-warning system in financial crisis.