Research On Financial Early Warning Of China’s Wind Power Equipment Listed Companies

Wind power equipment manufacturing industry is the pillar industry of clean energy development. It plays a very important role to promote the development of clean energy power. Internationally, in recent decades, large wind power technology matures and the industry competition pattern has gradually stabilized. There is still a big gap between China’s wind power manufacturing technology level and international advanced level. Development of China’s wind turbine is still in the start-up phase of the transition to maturity. If wind power equipment enterprises cannot maintain a good financial situation, they will be very easy to fall into a financial crisis, even bankruptcy. It’s imminent for wind power equipment listed companies to establish financial early warning system and prevent financial crisis.This paper has carried out relevant research on the financial early warning of China’s wind power equipment listed companies. The theory of financial crisis and the financial early warning has been expounded first, and from five aspects, the basic indicators of financial early warning system are described. This paper defined China’s major wind power equipment listed company profile, and the current financial situation and the reasons for wind power equipment listed companies were analyzed. According to the wind power equipment listed companies’characteristics, this paper selected41listed companies as samples. Based on certain objectives and principles of financial indicators selection, this paper has built a financial early warning indicator system of wind power equipment listed companies. On this basis, it gradually established financial early warning models with the use of principal component analysis and multivariate discriminant analysis method. Then the model is validated with the use of41listed companies’financial data from2010to2012. Through empirical accuracy rate92.7%, the model is proven to be effective. Binding the result, this paper proposed to optimize financial early warning measures and recommendations in terms of two factors, the financial factors and non-financial factors. This study will enrich in different sectors of the financial early warning of theoretical research, and the empirical research also has a practical significance for corporate managers, investors, creditors and others.