The Research Of Corporate Financial Crisis Early-warning System Based On Balanced Scorecard

With the development of economic globalization and increasingly fierce market competition environment,companies bankruptcies are common occurrences and crisis is a normal phenomenon as threatening the company's survival and development.How to build a timely and effective financial crisis early-warning system to enable enterprises to identify potential risk factors and take preventive measures before the crisis has become an issue many scholars and managers of particular concern.From academics to study enterprise financial crisis historically,most of them are still confined to the financial dimension of early warning indicators relevant,but such as research and development expense ratio,customer retention and employee retention and other non-financial factors are play an important role in the daily prevention of financial crisis.The four dimensions of the Balanced Scorecard,namely financial,customer,internal operations and learning and growth not only include financial indicators and non-financial indicators,but with balanced properties.Based on this,this paper puts forward the corporate financial crisis early-warning system based on the balanced scorecard.This paper mainly takes the literature review method,analytic hierarchy process and empirical research,it focuses on the following five issues based on the research of many scholars to understand the above.The first part is sorting through documents,to be defined on the connotation of financial crisis.It elaborates the basis of relevant theories on Balanced Scorecard and financial crisis early-warning,and analyzes the feasibility of applying the Balanced Scorecard to corporate financial crisis.The second part,we put the reason of financial crisis into two major categories of external factors and internal factors combined with the corresponding case study.Then it analyzes the financial crisis incentives in detail,and divides the evolution of the financial crisis into four stages as latent,development,deterioration and achieve.The third part describes the indicators under four dimensions of the Balanced Scorecard,and establishes enterprise financial crisis based on the Balanced Scorecard indicator system combined with the incentives of financial crisis.The fourth part,it calculates the indicators weights by AHP and defines warning range of enterprise financial crisis.Finally,with specific companies,we use the early warning model of specific analysis as a example.