Constructing The Model Of Financial Early-Warning With A Statistical Method Of Principal Component Analysis

In recent years, under the background of economic globalization, some large enterprises who have a good development prospect begin to improve their assets and popularity through the listing. Along with the company's listing, it is faced with the business risk and financial risk which are also increasing, so management urgently need to reduce or avoid the risk by using some method. In the era of knowledge economy, network has become an important tool for office, at the same time, all kinds of reports and data are filled with managers of sight. How to look for rules in these data becomes the object of many scholars.Principal component analysis is an important statistical method and the application of this method is very wide, which can be used in agricultural statistics, financial statistics and other aspects of social statistics. In the paper, principal component analysis method is mainly used to construct the financial early warning model. In real life, we often meet with many multivariate problems, and especially, the multivariate is usually associated with each other, leading to dealing with the problems becomes very complex, however, principal component analysis method used in the paper can well solve the problem. The essence of principal component analysis method is all information of original variables replaced by several principal components which can not only reduce the number of variables and reduce the workload, but also will eventually solve the problems.At the beginning of the article mainly introduce the research background, and some of the research achievements in the field. The main part contains 25 companies who are from Chinese a-share market in 2013, and the corresponding normal companies as a representative sample, then based on SPSS software tools, statistical methods using principal component analysis, and finally set up the financial early warning model for China listing Corporation. Based on early warning model, extracting variables of the company forecast and test results. The results show that:In the paper, the financial early warning model established can predict the company's financial situation, and has great significance for the management of the listing Corporation to a certain extent.