The Research Of The Perdition To The Finance Distress On China's Listed Companies

List companies are the basis of the stock market, and their performance will directly influence its health development. In recent years our stock market develops rapidly, but as it has set up for not a long time, there are many problems in the stock market. Especially, some corporations make false seriously in order to become a list company. Some corporations were specially treatment (ST) soon after there became a list company and were taken over by other corporations; this has made big loss to many investors. More seriously, many investors have little knowledge of finance risk and their investing Behavior is irrational. It makes there search of the perdition system to the finance distress urgently. The policy of "ST" is a way of informing risk.Foreign researchers have made many studies on this. Recently, our country has some studies on our stock market, but there are few Predication model scan really reflect the condition. This study systematically reviews the main studies and problems of the Definition of finance distress, the device of sample, the selection of finance index and the method of analysis. We select 43"ST"corporations and 43 normal corporations as samples in Shanghai and Shenzhen stock market in the year of 2002, 2003 and 2004, and select 9 finance indexes as discriminating variables. Additionally, we choose another 56 corporation as test samples. The paper gives three finance distress discrimination models through applying for the Fisher analysis, the principal component analysis and Logistic regression analysis. It shows: comparatively, three discrimination models can all predict the finance distress correctly. Among these models, the rate of false discrimination of the Logistic model is the lowest. But the Fisher model is the simplest.