Research On The Construction Of Financial Risk Early Warning System For Scientific And Technological Enterprises In The Grain Industry

It is popularly said that “foods are the most important to people and among foods,the grain is the most important one”.The grainindustry is the basisfor the rapiddevelopment of the economy.In October 2016,an outline for development issued by NDRC andSAGplans to enhancethe informatizationlevel of this industry.The technology-based enterprises(TBEs)in grain industry have better opportunities for development,butdue to theircharacteristics,they also face many risks.For example,the frequent adjustment of the policies,insufficientinnovation,slow growth of company size,obstacles in cash flow and so on.Such riskscan even cause bankruptcy.Presently,the financial early-warning system(FEWS)is an important method to help enterprises identify risks earlier and improve the management efficiency.However,due to the characteristics of different industries,the results from unmodified traditional FEWS are not satisfied.Hence,it is important for us to carry out anin-depth study of the TBEs in the grain industry and formulate a feasible FEWS,which is of great significance for promoting the healthy and sustainable development of the enterprises.This thesis studiesthe TBEs in grain industry.Through the research and analysis of the related theories of FEWS at home and abroad,and combining the characteristics of this type of enterprise,the corresponding indexes are selected from four aspects,such as debt paying ability.Through field investigation and expert interview,the critical value of each financial index is determined,and the FEWS of TBEs in the grain industry is established.Then,we take Company A as a study case.This FEWS has been verified by studying its financial data and operating condition from year 2007 to 2016.Finally,we identified the key issues existed in this company by analyzing the results from this early-warning system.The corresponding suggestions are given forother companies in this industry.It is found in this thesiscan that TBEs in grain industry are characterized by government policies,high investment,strong pressure for innovation and urge for development.The financial early-warning system of science and technology enterprises in grain industry can be built from 4 dimensions of debt paying ability,profitability,operation ability and development ability,which can comprehensively reflect the financial risk situation.The coping strategies of financial risks can be tackled from 5 aspects: enhancing risk awareness,optimizing capital structure,holding policy timing,balancing investment scale and continuously strengthening innovation.This study provides detailed strategies and methods for A company to build financial early-warning system,and also provides reference for other types of enterprises.