A study on the establishment of financial crisis early-warning model for A-share listed companies

摘要

Based up on accounting information of the listed companies on China's A-Share Market, this article attempts to establish a financial crisis early-warning model which is capable of predicting company financial crisis while analyzing the causation of such crisis by adopting a distance discriminant analysis. Compared with the previous research concerned, the said model comprises the following: integrity crisis early-warning model, business efficiency predictive model, financial structure predictive model, growth capacity predictive model, and repayment capacity predictive model, therefore the application of those predicting results has higher accuracy. It will be able to assist the manager in detecting potential financial crisis in due time as well as discovering the reason, while stakeholders may also use the model to make the right decision.