Exploration of Mathematical Model of Listed Companies Financial Early-warning

Abstract

Financial early-warning is the important section for financial risk analysis and financial management; its purpose is to accurately discover and recognize financial risks in advance. The financial early-warning system lies in the whole process of production and operating activities of enterprises. Each enterprise should set up the applicable early-warning system, help enterprises foresee and prevent the financial risk and financial crisis. How to conduct accurate early-warning may reflect whether the risk management of enterprises is good or bad. This paper sets up the early-warning mathematical model of financial risk by selecting the samples of financial database of listed companies through the multivariable principal component analysis. Meanwhile, it reflects different risk degrees, so as to predict the financial risk of enterprises.