Research On Financial Early Warning Of The Listed Companies In The Thermal Power In China

The more and more fierce competition in the market supplies corporations with more opportunities to develop as well as a lot of market risks, in which financial risks take a great part in financial, accounting, and operating information are the barometer of reflecting the whole company’s development. Meanwhile, it is also the basis of the macro-economic diplomacy. The power generation companies, as the basis of the energy supply, not only influence the company’s development, but also relate to the energy supply security and our basic life. Power generation companies in our country experienced the change from monopoly to free competition. During this period, some corporations are facing serious financial risks. Then what is going on in the finance of listed corporations in China? How to measure their financial situations? So far, there are lots of financial early-warning systems, but no one is made especially for power generation companies in our country. So, this research starts from solving these problems.After reading many papers about financial early-warning inside and outside deeply, this research analyzed the characters of corporations in domestic power generation companies and their financial risks, in accordance with the characters of power generation companies in China. Moreover, it analyzed the general characters and potential risks of power enterprises. From the angle of qualitative analysis, this paper explored financial risks of Power generation companies, and then built the financial pre-warning index system of power enterprises with pre-warning indexes selected by the method of correlation. Besides, it decided weighting factor of every pre-warning index with the analytic hierarchy process, and built the quantitative model for the financial pre-warning in power enterprises and also decides standard values of financial pre-warning index with the method of effectiveness factor. Furthermore, it made an empirical analysis on a certain power enterprise with the model built in this paper. According to the research results, the paper made a comprehensive and objective judgment on the financial status of listed companies in the power, and measured financial risk of power enterprises listed companies effectively. Ultimately, it put forward some suggestions for China’s power companies and their holding companies about how to avoid financial risks. In such a competitive market, this research has great significance for the warning of financial risk of the national regulators and power companies themselves.