Empirical Research On Financial Distress Prediction Of Listed Company In China

Empirical research on financial distress prediction is one of the most important research subjects. and the studies by making use of financial ratios on financial distress prediction is emerging in an endless stream. most of these studies not only particular focused on the construction of model, but also only cheese the financial indexes to such three respects as enterprise's liquidity, the profitability and managerial ability of the assets and so on. This dissertation tries to choose financial ratios from company's important economic activities : investment activities, financing activities and operating activities from the respective of financial management based on domestic existing research for estabilishing a listed company financial distress prediction model and could provide a new research respective.Firstly, this dissertation selected 50 ST companies of Chinese listed companies from 2004 to 2006 as the financial distress samples and 50 companies in normal in accordance with 1:1 matching principle. Secondly, the dissertation selected 28 financial ratios which describe corporate investment activities, financing activities and operating activities from the perspective of financial management, then make empirical analysis to acknowledge what changes have and whether there has significant difference between the two groups from the fourth year before the distress to the year before the distress. Thirdly, this dissertation set up financial distress prediction model of listed companies by making use of Logistic Regression analysis. Finally, the paper gives some suggestions and development direction in the future.