Research on Financial Risk Early Warning of Listed Companies in Guangzhou Based on Z-Score Model

Abstract

The financial situation of listed companies in Guangzhou was empirically investigated by using the Z-Score model. The results showed that the listed companies under satisfactory financial situation played an absolutely dominant role in Guangzhou in both quantity and proportion, generally performing well when faced with financial risks. However, the quantity and proportion of companies on the verge of bankruptcy present a continuously rising trend, so do the quantity and proportion of companies with extremely unstable financial and operation status. Therefore, the overall financial status of listed companies is not optimistic in Guangzhou, and the probability of financial crisis is enhanced.