Establishing Financial Crisis Early Warning Models for Listed Companies

In the context of financial storm, financial crisis early warning has become an important object of research in the field of corporate financial management. This paper collected the data from China Stock Market Trading Database (CSMAR) and sorted out the financial indices of listed companies. We first used factor analysis to select variables and extract common factors, and then established the financial crisis early warning models with logistic regression. The research manifests that signs of corporations´ financial crisis reflected by their financial indices always precedes the actual crisis. The financial crisis can be predicted through comprehensive analysis of these important indices.