Research On The Financial Distress Prediction Of Listed Companies In China

Financial distress prediction has been a topic of broadly concerned for a long time. In the rapid developing but yet immature Chinese securities market, financial security of listed companies is vital to their stakeholders, so studying the financial situation of listed companies is important for keeping the securities market robust, moreover, because there are so many listed companies, if we can predict the distress of them beforehand, it is significant not only for supervisor, banks and investors, but also for listed companies themselves.This study regards listed companies received special treatment as a signal of financial distress, and try to predict financial failure of listed companies in China. This thesis has established the logistic model in order to predict whether the listed companies will be involved in financial distress in virtue of SPSS 17.0.This thesis has four chapter: the first chapter is about analysis background, the significance and the framework of content, and puts forward some possible innovations. The second chapter talks about the definition of financial distress, the reasons of financial distress produced in our listed companies and some important theories of financial prediction system. The third chapter select samples, index and research approach., then the financial distress prediction model of the listed companies is built up in this chapter. The fourth chapter gives the conclusions of the model and points out limitations of the paper study, puts forward continuous research directions.