Listed Companies In Financial Distress Discriminant Model Theoretical Analysis And Empirical Research

In recent years, several influential financial distress events occurred in our country, which caused huge losses to the shareholders, creditors, company staffs and our country, especially affected financial industry involving several stock institutions and banks. Taking a deep insight on these events, we can find easily that the occurrence of these events is closely related to the absence of prediction system and the inefficient financial supervision in our financial system. At present, the absence of forecast power is obvious in the whole financial system, and the research of this theme in our country is still in the immature stage, which implies the study of financial distress forecast will be a more and more important topic in the risk research field.This article firstly reviews previous empirical results of the Research on the financial predicting models. Based on the summary of previous research methods and results, we analyze the causes of the financial distress. The the causes of the financial distress refer to all the inner and exterior factors that arouse the the financial distress. The inner factors are mainly about the bad management. The exterior factors are mainly about the drastic market environment, the adverse change of policy, etc. In our country, because of the influence of the planned economy for a long term, the financial system, the capital market, the social credit system, the title market are not perfect. There are many nonstandard actions in their function and management. Therefore there are many special characteristics of financial distress in our country.We selecte 56 Publicly listed firms which were special treated(ST) in the year 2003, 2004, 2005 and 56 normal firms selected randomly as...