Research On Finance Risk Of Listed Private Enterprises In China Based On Var

At present, the international economic situation tensions, financial environment turbulence, the Chinese economy has also been a significant level of impact, this brought a lot of challenges to the listed private enterprises that economic foundation is not solid, in this case, the listed private companies need to strengthen enterprise management to survive and trend. Financial management is the core part of business management, and prevention of financial risks is the premise of good financial management. Therefore, the private listed companies’ financial risk becomes an issue of concern.This paper starting from the current development of Chinese listed private enterprises, to identify the existence of financial risk, the reason for the financial risk from both internal and external analysis, and using empirical analysis, establish financial risk early warning model to identify effective prevention strategies and methods of financial risk. Finally, this paper focuses on the financial risk early warning model, select financial data for 2007-2010 and the 17 financial indicators as independent variables to identify the significant indicators of financial risk, establish financial early warning model with high warning discriminate ability.This paper consists of five parts. The first chapter describes the domestic and international economic situation and background on the financial risk of private listed companies, the objectives of the research and the meaning on various aspects, as well as the concept of listed private companies, financial risk, and financial early warning model. The second chapter is the literature review of financial risk research on Chinese Listed Private Enterprise. The research of Financial Risk Model, the research status of the financial risk control strategies, and financial risks in Chinese Listed Private Enterprise were introduced. The third chapter is the financial risk analysis of Chinese Listed Private Enterprise, analysis of status quo of China’s private listed companies, the main financial risks, and find out the reason, and finally explore the preventive measures and methods. One of the most practical and effective method is to create a financial risk early warning model. The fourth chapter introduced how to create a financial risk early warning model.2007 to 2010 financial data have been used as the study sample,17 financial indicators and Var as research variables, to create Financial risk early warning model, and analyze the discrimination ability and stability. The last part is conclusions and forward-looking.The innovation of this paper, on the one hand, the external financial market risk is quantified into index to participate in the establishment of the financial risk early warning model, taking into account the impact of changes in the financial market environment, the financial risk of private listed companies. On the other hand, this paper selected sample to test the accuracy financial risk early warning model.