The Applicability of a Financial Crisis Early Warning System for Chinese Entrepreneurial Listed Companies
DOI:
https://doi.org/10.61841/z0z35604Keywords:
Early Warning Model, Financial Crisis, GEM, Applicability, BankruptcyAbstract
The purpose of this study is to establish an early warning model for financial crises suitable for Chinese entrepreneurial listed enterprises. The study builds the model using financial indicators to analyze the financial early warning effect of Chinese entrepreneurial listed enterprises. The result shows that Chinese entrepreneurial companies can use a series of financial indicators and appropriate early warning models to predict a financial crisis, avoid bankruptcy, and help enterprises grow and develop better health. The conclusion of this study puts forward the following suggestions: First, the decision-makers of listed companies on the GEM should change their financial management methods and educate their managers on the importance of the early warnings of financial crises. Second, education should not be limited to the decision-makers and managers of GEM listed companies. The whole staff needs to be trained to form a common understanding of the early warning signs of a financial crisis. Third, the government should strongly support the effective implementation of a financial crisis early warning operating system.
Downloads
References
[1] Jang, H. S., (2019). Study on the Effect of Creative Characteristics of Culture and Arts Organization Workers Regarding Self-efficacy and Business Performance. International Journal of Advanced Culture Technology, 7(2), 52-59.
[2] Bae, S. H., (2019). A Study on Determinants of Financial Soundness of Savings Banks. The Journal of the Convergence on Culture Technology, 5(4), 275-280.
[3] Beaver, W. H. (1966). Financial Ratios as Predictors of Failure. Journal of Accounting Research, 4, 71-111.
[4] Song, M. Z. (2019). A Study on Artificial Intelligence Based Business Models of Media Firms. International Journal of Advanced Smart Convergence, 8(2), 56-67.
[5] Ohlson, J. A. (1980). Financial Ratios and the Probabilistic Prediction of Bankruptcy. Journal of Accounting Research, 18(1), 109-131.
[6] Altman, E. I. (1968). Financial Ratios, Discriminant Analysis and the Prediction of Corporate Bankruptcy. The Journal of Finance, 23(4), 589-609.
[7] Deakin, E. B. (1972). A Discriminant Analysis of Predictors of Business Failure. Journal of Accounting Research, 10(1), 167-179.
[8] Ross, S. A., Westerfield, R. W., & Jaff, J. F. (1999). The Company Manages its Finances. Bei Jing, BJ: Beijing Machinery Industry Press.
[9] Gu, Y., & Liu, S. (1999). Analysis and Countermeasure of Investment Behavior of Financial Crisis Enterprise. Accounting Study,10, 28-31.
[10] Garcia, R. A., Park, B. J., & Chang, B. Y. (2019). Corporate Social Responsibility Impact on Business Performance through Green Supply Chain Management: Evidence from Guatemala. International Journal of Internet, Broadcasting and Communication, 11(4), 59-64.
Downloads
Published
Issue
Section
License
This work is licensed under a Creative Commons Attribution 4.0 International License.
You are free to:
- Share — copy and redistribute the material in any medium or format for any purpose, even commercially.
- Adapt — remix, transform, and build upon the material for any purpose, even commercially.
- The licensor cannot revoke these freedoms as long as you follow the license terms.
Under the following terms:
- Attribution — You must give appropriate credit , provide a link to the license, and indicate if changes were made . You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
- No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.
Notices:
You do not have to comply with the license for elements of the material in the public domain or where your use is permitted by an applicable exception or limitation .
No warranties are given. The license may not give you all of the permissions necessary for your intended use. For example, other rights such as publicity, privacy, or moral rights may limit how you use the material.
