Empirical analysis on financial early-warning mechanism in listed real estate stocks

In this paper, taking the listed companies of Chinese real estate industry which are on the stock exchanges of shanghai and Shenzhen from 2004 to 2006 as research samples, by establishing Z3financial early-warning model, surveys financial security and crisis degree of these companies, thus manifests the credibility and necessity of financial early-warning. For the companies which are in the danger zone, owing to the capital structures are not reasonable, funds for business activities are short, and ability to make a profit is also inferior, so the author gives some suggestions, such as improve management of funds for business activities, carry through property reorganization, expand financing channels and so on, and provides the policy-making basis for the operators and the investors.