Open AccessAnalysis of Financial Crisis Early Warning Model of Listed Enterprises in China
Author(s) -
Chong Zhang,
Zhengyu Duan,
M. Ronnier Luo
Publication year - 2020
Publication title -
journal of physics. conference series
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.21
H-Index - 85
eISSN - 1742-6596
pISSN - 1742-6588
DOI - 10.1088/1742-6596/1584/1/012052
Subject(s) - financial crisis , china , warning system , business , financial distress , finance , financial system , financial ratio , economics , political science , macroeconomics , engineering , law , aerospace engineering
In recent years, many studies show that corporate financial crisis usually has a long hidden period. If this hypothesis can predict the financial crisis of enterprises, it is expected to control the destructive power brought about by the financial crisis to a minimum. Therefore, this paper takes 108 listed financial crisis companies (ST companies) and 435 non-ST listed companies in China’s A-share annual report in 2019 as reference samples. Then, on the basis of these indicators, the corresponding models are established. The results show that through the analysis of various indicators, we can find the potential financial crisis prediction information and predict the company’s financial distress. From the results of the model analysis, we can see that in the year before the financial crisis, the variables of the financial model are the most. This shows that the closer the year of ST occurs, the higher the accuracy of the model.