An Empirical Analysis On Early-Warning Model Of Financial Distress For Chinese Listed Companies

With the planned economy to market economy, Chinese enterprises are pushed to the market and the regulation of listed companies is increasingly standardized and strictly. Especially ST implemented since 1998, the Shanghai and Shenzhen stock markets have a total of over 200 listed companies which are special treatment. The majority of these ST companies are ST because of the unusual financial situation, in other words, the listed companies are ST because of the financial problem mostly, and therefore, financial distress becomes symbol of ST companies. Facing ST companies from China stock market, research on early-warning model of financial distress has important practical significance. Researching early-warning model of financial distress is significant for surveillance department, listed companies, investors, creditors and other stakeholders who evaluate the operation of enterprises, credit and investment value and so on.Foreign market development is already quite perfect, and research on early-warning model of financial distress is very much and the results are quite mature, in contrast, research on early-warning model of financial distress in China is still at an exploratory stage, which does not match with the development of the market economy. Based on this the status quo, the author starts research from the definition of financial distress, according to domestic and foreign scholars' definition to financial distress and Chinese national situation, and proposes this article's definition to financial distress, followed by comparison analyzing normative theories and empirical theory of financial distress prediction, its author, more inclined to use empirical theory to research financial distress prediction, later on, analysis comprehensively early-warning model of financial distress based on empirical theory, then tests effectiveness and Forecast results of early-warning model of financial distress with the empirical data of Chinese listed companies, and finally sums up the conclusions of this article and enlightenment. Along this research idea, the article is divided into the following five parts:Part One is the preface. This part outlines the background and significance of the study, and introduces research results of domestic and foreign scholars on early-warning model of financial distress in detail and research ideas, approach and framework of this thesis.Part Two is theoretical introduction of financial distress prediction. First, introduce domestic and foreign scholars' definition to financial distress, second, proposes this...