Financial Evaluation And Control Of The Listed Manufacturing Companies

Since the financial crisis in 2008, the complex environments such as the changing global conditions and the lack of inadequate internal control, have brought huge hazards to the risk management which should deserves more attention in manufacturing enterprises. Particularly, manufacturing enterprises have always faced the challenge in evaluating the financial risk, which is the core risk of enterprise management. Therefore, it is significant to study the factors and evaluation of financial risk in manufacturing enterprises and put forward several corresponding measures.Firstly, the concept, characteristics, types and evaluation method of financial risk are elaborated in detail. Then, the financial conditions and problems of the manufacturing listed company are analyzed from three aspects of financing, investment and income distribution. And the inner and outer reason of financial risk is further analyzed. Next, on account of the inapplicable of Z-Score model for assessing the financial risk of the manufacturing enterprises in our country, this paper improves the Z-Score model from four indexes which are the capacities of profiting, operation, debt servicing and development. The study assesses 15 ST companies and 30 non-ST companies among Chinese manufacturing listed companies, and conducts an empirical analysis on pertinent financial data from 2011 to 2013 of the 49 companies. By calculating the Z-Score of 49 sample enterprises through the Z-Score model and modeling with new indexes, this study finds that the modified Z-Score model has a higher accuracy in measuring the financial risk of the manufacturing enterprises. Lastly, this paper gives suggestions on financial activity, investment activity and income distribution to control financial risk based on foreign relevant experience and China’s specific conditions.