Research On Financial Early Warning Of China's Growing Enterprises

The early warning of financial crisis in corporate governance has always been an important topic in enterprise management and financial management.When a company has a financial crisis,it will have a great impact on the production and operation of enterprises.How to survive and develop in the crisis has become a key problem that enterprises,governments and even society need to solve urgently.Because the financial characteristics of enterprises in different life cycles are different,the mechanism and factors of financial crisis of enterprises in different life cycles are different,and the strategies to deal with financial risks should also be different.Therefore,the enterprise life cycle provides an important tool and a new perspective for early warning research of financial distress.Compared with enterprises in other life cycle stages,financial risk is more prominent.Based on the data of relevant financial indicators of growing enterprises,this paper establishes an early warning model of financial risks of growing enterprises,and puts forward the preventive and control measures of financial risks of growing enterprises.Firstly,this paper reviews the concept of financial crisis and the early warning model of financial crisis.On the basis of the theory of enterprise life cycle,it defines the long-term enterprises by quantitative method: satisfying the annual net operating cash flow is positive,the net investment cash flow is negative,and the net financing cash flow is present.Enterprises with positive cash flow are growing enterprises.Based on the analysis of the characteristics of the growing enterprises and the deep-seated causes of the financial crisis of the listed companies in the growing period,a long-term financial early warning index system is constructed,which mainly reflects the financial situation and supplements the corporate governance index reflecting the internal management behavior,taking into account the different stages of the life cycle of the enterprises.There are differences in the causes of financial crisis among listed companies.Logistic model with pure financial indicators and logistic model with corporate governance indicators are constructed,and the early warningeffect of Logistic model with corporate governance indicators is proved by comparative study.Understanding that internal causes are the source of things' development,that is,the fundamental cause of things' development,determines the nature and direction of things' development.External causes are the conditions of things' change and development,and play an accelerating or delaying role in things' change and development.Finally,in view of the above research conclusions,this paper puts forward relevant suggestions for long-term enterprises,and points out the problems and shortcomings of this paper,as well as the future research directions.