The Reserch On Financing Early Warning Of China Iron And Steel Industry

The series of problems such as unreasonable capital structure,long term capital turnover,poor financing capacity and financial risk management,wildly exist in the financial management of China's iron and steel industry.These difficulties impose effects with different extents on the objectivity of financing analysis of the listed companies in iron and steel industry.based on that,it presents different representation of the financial crisis.Therefore,it's unsuitable to apply universal model to the financing analysis of the listed company of iron and steel industry,so how to objectively make an early warning against the financing crisis of these companies has been an urgent research topic,this paper taking these companies as the research object mainly discusses the early warning model of whose financial crisis.This paper reviews the relevant research results,analyzes the current situation and main problems of financial crisis of the listed companies in China's steel industry,constructs its' financial risk pre-warning index system and model,puts forward some countermeasures and suggestions to strengthen the financial risk management of these companies on the condition of empirical analysis of financial early warning of 40 such Listed Companies.Research shows that unreasonable capital structure,long term capital turnover,poor adjustment ability and financial risk management,have wildly existed in the financial management of listed companies in China's iron and steel industry.Through principal component analysis,this paper optimizes the selected 17 indicators into 8 indicators which indicate the financial characteristics of the iron and steel industry,and gives the objective warning at different degrees.in view of the above,the main effect is abstracted from four aspects,such as namely solvency,asset operation ability,profit ability and cash flow ability,all of which explain about 85% of the variation degree of the financial index,has a decisive significance to the comprehensive score.Among the 4 abilities,the profitability of the enterprise takes the first place,the sales net interest rate,the main business income rate is relatively important to other indicators,while cash flow ability impact a little on the financial crisis of these companies.the level of risk being obtained from factor analysis and principal component regression model,has been identified through the application of neural network model,finally get the accuracy up to 75%,and then three suggestions are given for the financial risk management of Listed Companies in the iron and steel industry: to reduce the risk of debt,increase profitability,improve operational capability.The eight important indexes abstracted through the principal component analysis method in this paper,which affect the financial early-warning of the listed companies in the steel industry,has practical reference value to these companies.