China’s Automobile Manufacturing Enterprise Financial Risk Warning Research

Since the1980s, with the rapid development of economy, China’s car manufacturingindustry has achieved vigorous development, has become one of the important pillarindustry in China. The rapid growth in vehicle production from220,000in1980to19,271,800in2012, sales growth from145,900in1996to19,306,400in2012. The degreeof concentration of the automotive industry, manufacturing capacity, management hassignificantly improved. With China’s accession to the WTO, the structure of theautomobile industry has been constantly upgrading and adjustment, merger andreorganization among enterprises is constantly advancing. At the same time, foreignautomobile manufacturing enterprises enter the Chinese market is accelerated, causes thedomestic automobile manufacturing enterprise production and operation of the internaland external environment of competition further intensified. In addition, the merger andreorganization of the potential risk to the enterprise, some began their cash flow, solvencyand the main business of the reduced ability unfavorable phenomenon. Chineseautomobile manufacturing enterprises while facing good opportunities for developmentwill also be exposed to greater business risks and financial risks.At home and abroad more research on the financial risk early warning, but because ofthe different circumstances faced by the various types of enterprises, financial riskwarning did not achieve the desired results. China automobile manufacturing enterprises iscapital intensive, big investment and long payback period, the complex marketenvironment, financial activity may exist all kinds of risks. Therefore, accurate for China’sautomobile manufacturing enterprise financial risk analysis not only relates to the healthydevelopment of the enterprise, but also the objective requirement of market competitionsystem. In view of this, based on the financial risk management theory and thecharacteristic of the automobile manufacture enterprise itself, using wavelet neuralnetwork model, early warning result analysis method of combining the quantitative andqualitative analysis, for China’s automobile manufacturing enterprises financial risk earlywarning has carried on the thorough discussion.This article first through to the enterprise financial risk early warning theory carrieson the induction and summary, defines the concept of financial risk and financial risk earlywarning, summarizes the theory related to the corporate financial risk early warning,analysis of the development of Chinese automobile manufacturing enterprises as well asthe risk management status quo, and from two aspects of internal and externalenvironment analysis of its causes. Then, to select the early warning model, selectingsamples of early-warning model and index, build financial risk early warning model, themodel for empirical analysis based on wavelet neural network is established the basic trainof thought of Chinese automobile manufacturing enterprises financial risk early warningmodel. Finally, using the early warning model constructed in this paper for a automobilespecific manufacturing enterprise financial risk forecast, according to the enterprise early warning results put forward the corresponding precautionary countermeasures.