Z-score Model on Financial Crisis Early-Warning of Listed Real Estate Companies in China: a Financial Engineering Perspective

Abstract

Financial engineers developed quantitative models that help firms making financial decisions in the face of risk and uncertainty. Z-score model is one of the most frequently used risk early warning models in financial engineering, but it needs further research to prove whether it is suitable for China's burgeoning real estate enterprises. The financial data of China's 40 listed real estate companies is processed in this article, and statistic analysis is conducted, so as to judge the effectiveness of Z-score model on financial risk early warning of China's listed real estate companies.