Research On The Financial Early-warning Of Chinese Listed Non-ferrous Metals Company Based On The "Z-Score" Model

As a fundamental pillar industry in China’s national economy, the non-ferrousmetals industry plays a vital role in promoting coordinated economic and socialdevelopment and defense technological advancement. However, the development ofnon-ferrous metals industry is facing multiple risks because of the irrationalindustrial structure, scarcest resources and unequal pricing power. In the meantime,at present the regulation of industry companies is based on static supervision andpost supervision, it causes weakness in supervision, especially for listed companies,if ignored, a series of risk is likely to evolve into financial crisis, which led to thebankruptcy of the company. Therefore, it has become one of the key issues to besolved how to establish financial early warning model of non-ferrous metals industryand avoid finance risk timely and ensure financial security.The paper mainly research on the finance crisis early-warning model of Chinesenon-ferrous metals listed company. The full text consists of six parts. In part1, thearticle introduces the research’s background, significance and reviews related papersto define the content and structure. In part2, the article briefly introduces thedefinition of financial prediction and makes a simple comparison between severalmodels of financial early-warning. In part3, this article describes the characteristicand current risk status of non-ferrous metals industry. Part4is a core of this paper,this chapter analyses how to establish financial early-warning model throughfiltering19financial indexes of41listed companies and sets up the critical value offinancial risk. In part5, verify the Z-Score model’s applicability of other samplecompanies of non-ferrous metals industry. At last, come to the conclusion andpropose how to perfect warning system of financial risk.