The Study On Financial Early Warning Model Of Listed Company Of China

With the deepen of market economy system innovation and the development of capital market, more and more corporation occur financial crisis or even bankrupt, so it is a very importment study to predict the financial crisis. Bankruptcy systems are the basic grounds of economy cycle, which provide approaches for noncompetitive entities to exit this battlefield. However, as we know, bankruptcy can lead to serious consequences. If we can use a model to predict the bankruptcy possibilities, maybe some or even most of the unfavorable results can be avoided. This dissertation is one of the first efforts in this area in China. In our country, bankruptcy legislation is becoming more and more applicable and significant, which constitutes one of the most primary conditions for the setup of Bankruptcy Prediction Model. On the other hand, this kind of model also has important meanings to the Special Treated companies in the stock market.In fact, ST is a singal of the financial problems,meanwhile, it is hard to be a listed company, at present,the possibility of bankrupycy of the listed compang is very little. In this dissertation, I define these Special Treated (ST) ones as financially troubled companies, and then use financial data from these companies, compared with those from Non-ST ones, to build a numerical prediction model. This model can be used to assess the possibilities of whether a company will be embarrassed by financial problems in the future. I believe it's very useful for investors, official authorities, and the creditors.