Based On Survival Analysis Of Private Enterprise Financial Risk

With the quick steps of the economy internationalization, domestic enterprises are facing a bigger market, also with more competition. As a main part of active economic entities in China, private enterprises have countered more problems in its development, due to its capital size, credit history and lack of information. Financing for private enterprises is more difficult, financial risk is the main factor. This raises the concern of many scholars.In this study, we introduced survival analysis into a different area——financial risk. Through comparing with traditional methods, this paper proved the applicability of survival analysis in financial risk study. Also, we used the real data of private enterprises for empirical research and build Cox hazard model. The results shows that solvency, profitability, growth, and cash flow all have positive effect on the development of private enterprises, but the proportion of tradable shares has negative effect.Further, we focused on the ST enterprises, and find the relationships between the survival and different variables. If ST enterprises want to be out of woods, PE ratio and the proportion of tradable shares is the main point. Also joint-stock reform is necessary.