To Create And Study Finaicial Crisis Precuation Model In Taiwan--The Case Of Public Listed

Previous studies showed that financial factor is one of the important elements that have great influence on corporate performance. Also, financial distress prediction model is mainly used to evaluate the condition of corporate performance. However, about the effects of non-financial factors on the propensity of financial distress. Therefore, this study considers about non-financial factor when establishing the financial distress model in order to realize whether non-financial factor is a good indicator of financial distress and whether non-financial factor makes the construction of financial distress model better accordingly.Using a matched pairs design, this study examines a sample of 15 distress firms along with 30 non-distress firms. Also, a logistic regression analysis is used to establish the financial distress model with and without non-financial factors respectively, in order to test the hypotheses developed by this study and to derive the conclusion.The findings of this study are as follows.â… , Considers about financial factor when establishing the financial distress model.1. One years before the failure: the profitability, the short-term solvency and the working ability are significantly.2. Two years before the failure: the short-term solvency is significantly.3. Three years before the failure: the profitability, the short-term solvency and the working ability are significantly.â…¡, Considers about financial factor and non-financial factor when establishing the financial distress model.1. One years before the failure: the profitability and working ability are significantly related with working ability.2. Two years before the failure: the short-term solvency, the blockholders shareholding characteristic and the individual financial leverage of directors are significantly.3. Three years before the failure: the profitability, the short-term solvency, working ability, growth, the blockholders shareholding characteristic and the individual financial leverage of directors are significantly.â…¢, Hypotheses1. During the period between 3 years to 2 years before financial distress, the more the family and board characteristic reinforcing corporate governance, the lower the probability of financial distress incidents is.2. During the period of 3 years before financial distress, no sufficient evidence show that the blockholders1 shareholding characteristic relates to the occurrence of financial distress.3. During the period between 3 years to 2 years before financial distress, the higher the individual financial leverage of directors is, the greater the probability of financial distress incidents is.