| Financial management is can’t be eliminated by every enterprise from start-up,growth, maturity, to decline. Financial early warning is a method of detection, diagnosis and alarm to financial risk in financial management activities, according to some factors’ changes such as operating conditions, financial indexes and so on. Chinese economic growth rate is slowing down in the new normal, and many enterprises face transformation and upgrading, under this background, we analyze the problems existing in the financial risk of enterprises, establish the appropriate financial early warning model, and provide reference for stakeholders.First of all, we analyze the background and significance of this research, summarize the present situation of the related research at home and abroad, contraste different methods of financial early warning, and decide to use BP neural network to do financial early warning. Then we define financial risk and other concepts about financial early warning, and explain the rationale of neural network.Secondly, this paper explores the basic situation and problems about financial risk of small and medium board listing corporations, and analyzes the reasons, so that study financial situation of the companies in our country preliminarily.Thirdly, this paper selects 19 financial indexes which reflect paying ability, operation ability, profitability and development ability, and combined with 3 non-financial indexes,to build the financial early warning index system. Then we divide the companies into five classification from health to severe warning by clustering method. After that, we use the latest data of the small and medium enterprise board listed companies to build a early warning model by BP neural network, then test the model and explain the limitations of the model.Finally, we take measures for enterprises and government to cope with the financial risk, and make propositions to the enterprises’ operation. |
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