Research On Financial Risk Evaluation And Control Of Baosteel Shares Based On Z-score Model

The steel industry is an important supporting force for China’s economic development and one of the basic industries in China.It has a high degree of correlation with related industries.So,the development of the steel industry will not only have an impact on economic growth,will promote the development of upstream and downstream industries.China’s steel industry has faced many internal and external challenges in recent years,which is not conducive to the development of the industry and the production and operation of steel enterprises,and also adversely affects the development of the domestic economy and capital market.In addition,at present,the competition in China’s steel market is intensifying,and unreasonable competition between enterprises will lead to problems such as overcapacity and low prices in the steel industry,so that China’s steel enterprises will have financial risks and affect the normal operation of steel enterprises,so steel companies should reasonably control financial risks.This thesis takes Baosteel as the research object.Firstly,it uses the analysis method of financial indicators to analyze the financial risks of Baosteel from four aspects : financing,investment,operation and income distribution.Then using the non-financial index analysis method,combined with the actual situation of Baosteel,the thesis evaluates the performance of Baosteel from various angles.In order to make up for the shortcomings of traditional financial index evaluation methods and improve the accuracy and predictability of financial risk evaluation,this thesis proposes to apply Z-core model to the financial risk evaluation of Baosteel.According to the development status of Baosteel,the necessity and feasibility of the application of Z-score model is discussed.Thus,the Z-score model is constructed to further evaluate the financial risk of Baosteel.This thesis also introduces the application process of the model in detail,and according to the calculated Z-value evaluation of single-factor financial risk and comprehensive financial risk,the financial risk evaluation results are obtained.Based on the financial risk results of Baosteel,this thesis analyzes the causes of its financial risk and finds that it is affected by external environment and internal management.Finally,after a clear understanding of the overall financial risk of the enterprise,this thesis proposes targeted financial risk control measures to improve the adaptability of enterprises to the external environment on the one hand,and optimize the internal management of enterprises on the other hand.This thesis aims to reduce the financial risk of Baosteel and promote the sustainable development of high quality enterprises.At the same time,it also has certain reference significance for other steel enterprises in China.