An Empirical Research on Financial Crisis Early Warning System from the Inventory Perspective

摘要

In allusion to the insufficient research on financial crisis early warning of listed companies in China, this paper makes an empirical research on the correlation between the companies’ inventory risk and financial crisis with the design of two indicators like inventory turnover ratio and inventory scale through logistic regression analysis. The results showed that: 1) The inventory turnover ratio is negatively related to financial crises, in other words, the lower the inventory turnover ratio is, the more it likely to have financial crises; 2) The inventory scale is in direct proportion to financial crises, in other words, the smaller the inventory volume is, the less it likely to have financial crises.