Financial Risk Early Warning Of Listed Companies In China

Today, the market is increasingly competitive, ever-changing unpredictable market, plus the interaction of various factors, an enterprise financial risk situation is more common. Listed company has a unique characteristic of their business in our country, and its operating status for the overall operation of China’s market economy has a huge influence, it plays a fundamental role in the national economic system, if the occurrence of financial risk, its influence can be imagined conceivable. However, from April 2001, the first listed company PT Narcissus was delisted from the beginning, the case of a listed company’s financial risks have occurred frequently, exchange listed company to withdraw the new regulations released, * ST Yanhuang first met delisting disposal, until early 2014, the last year of the listed company’s annual report of 1734 plus the two exchanges announced in a marked deterioration in the financial condition of a total of 589 companies, which includes a slight decrease of 198, estimated loss of 198 the first time a loss of 164. Therefore, to study it with great practicality.This paper uses empirical analysis and comparative analysis of the financial risk early warning Listed Companies in China analyzed the influence of the empirical analysis section, abnormal changes in the main financial indicators of Listed Companies data generated for the company risk. The shares of listed companies to be known as the ST title occurs financial risk, selected 49 listed companies in 2014 ST-year index data as the initial study sample, 49 non-ST companies paired samples, data preliminary examination, using principal component analysis screened representing solvency, six factors profitability, cash flow, operating capabilities, capacity development model as independent variables, the final completion of the logistic regression model. Tested model comparison found the lowest rate of false positives with(t-2) years of data to establish empirical results show listed companies should primarily focus on profitability, cash flow, solvency, operating capacity indicators, with special attention to the Cash flow situation, the daily management of the timely prevention. Also, taking into account differences in different industries warning, targeted treatment process. In a comparative analysis, the thesis analyzed by various companies engaged in different businesses because while some warning distinction drawn financial risk warning indicator should focus on their differences, for example, equipment manufacturing, construction, Sushi and other industries, should focus on profitability indicators and capacity development indicators, agriculture, forestry, animal husbandry and fishery should focus on asset profit rate, profit increment rate, the total assets of the incremental rate and other indicators.Finally, based on empirical analysis and comparative analysis of the conclusions, the paper recommended that listed companies from the internal control, warning sound, targeted to respond to different sectors of the financial risk warning, and many other timely manner to avoid potential risks.