Abstract
In a word, financial risk prediction is to use financial indexes to forecast corporate risk. The research of financial risk prediction is always main problem in business and academic circles. How to recognize, assess, forecast financial risk is always one of the world researchers’ focus. Along our country joining the WTO, our country businesses face the exterior environment to of competition is more and more vigorous. The quantity of the businesses sink into the financial distress and cause bankruptcy hoicked, the wide spread ability of resisting the risk is weaker. It is important for business to raise their anti-risk ability and can make business executive known the latent danger in business as early as possible and adopt to reply the measure.
This paper introduces the financial warning of background and the significance as well as its theory and actuality; and then the financial bankruptcy as well as the system of financial warning existing problems and actuality of China's the listed company for analysis. From the above case study, we could know as for financial affairs early warning research of the listed company, the domestic and international once established many financial warning models; but the most domestic’s research learned from the model of international and there are three aspects of shortcoming such as the simplex method, the non-perfectly framework theoretical and the non-accurate suitable condition of model. Therefore this paper should set up an integrated system of cash flow predicting indexes according to the character of industry the listed company being built their financial warning model to forecast. Thus, explore a special system of financial affairs early warning for China's the listed company.
Key words: the system of financial affairs early warning Z-score model Cash flow index