The Introduction Of Non-financial Indicators Of Corporate Financial Crisis Early Warning Model

With the development of economic globalization and communication technology, more and more enterprises are faced with fierce competition in the market. Competition not only brings opportunities to the enterprises, but also brings much more challenges and crises. In the fierce market competition, some companies inevitably will be involved in financial crises, or even to threaten the survival of enterprises. Once the crisis happened, it will endanger a number of aspects of social and economic life, and bring enormous losses to business owners, creditors, employees, customers and government and other stakeholders. Especially listed companies, Jeopardize their once, it will result in greater than the impact of general business. Prediction of listed companies in the financial crisis has become investors, regulators and securities regulatory bodies of the important topics of concern.From the 1930's, researchers have been beginning to research the financial crisis, and in recent years domestic scholars also made considerable efforts. But most previous studies simply used the enterprise's financial target for the estimated model variables. This paper makes use of the financial statements of listed companied in China Stock exchange and non-financial information to build a successful model for corporate failure discrimination with Logistic Method Analysis. Based on financial factors, we add some non-financial variables into the model, such as equity structure, directorate information and audit advice.First, this paper introduces the current research status of financial predict model from domestic and foreign scholars on the financial, and then reviews some innovations and development trend in financial predict model with non-financial variables, and points out that the direction of the research in this paper. Secondly this paper discusses the concept of the financial crisis and the theoretical basis for the financial crisis, and then analyses the non-financial variables. Specially, it introduces theoretical basis that using equity structure, directorate information and audit advice as the variables of financial predict model. The third part is research design. We introduce the empirical method to select the variables and samples, and the empirical methods and empirical models. The fourth part builds up the predict model based financial variables and the predict model based on financial & non-financial variables by Logistic model after paired T test, wilcoxon paired test and Principal component analysis. And then we compare the two models to prove the non-financial variables can improve de predict ability of the financial predict model. At last, we summarize the empirical results and the shortcomings of our study.