China's Listed Companies In Financial Distress-z Model For Applied Research

Marching into the 21th century, economic globalization is becoming a kind of trend. After joining the WTO, enterprises will face the economic globalization wave tide hurtles to arouse and the market compete turning worse, the existence and development of the enterprise group have to face the unprecedented challenge and huge competition pressures. The enterprise sink into Financial Distress because of the finance crisis, even bankrupt is also a common phenomenon. How to make use of the finance information which enterprise published reasonable and effective is an important content that can lead the business enterprise keeps on management and develops. Making predicts scientific and accurately on future's finance failure needs to strengthen. The establishment of financial risk monitoring and crisis warning system within enterprises could keep the financial crisis away from enterprises or stop the financial crisis from developing. "Z-Score" model that the Altman of the United States put forward carried on the comprehensive analysis of finance to provide the important means for the enterprise. "Z-Score" model, which is a plural liner function set by applying of changeable thought, i t use various finance index signs to work out total discretion cent (Z value) to make the comprehensive analysis, predict the business enterprise of finance crisis. This model pays an important role in finance analysis, specially in finance crisis monitoring and warning.Financial distress is also called as financial crisis. For a company, this means that the company is facing with the difficulty to have a sustainable business. With the increasing number of distress(ST)companies in the stock markets in China, the research on financial distress is of practical importance and is also a good reference for the managers, loaners, stockholders and other beneficiaries to assess the operation, credit and investment of the company.As the development of our stock market, the improvement of management style and the escalation of investors' financing notion, the demands of betimes and accurately predicting financial problem become stronger and stronger. Through applying Altman's predicting finance distress of non-manufacturing listed companies (Z3-score model) to our country, this dissertation analyses, summarizes and evaluates the process and result of this empirical test. At last, this paper proposes some modifications according to the existing question in application of our country, and verifies the modification through concrete case study.This conclusion is helpful for the prediction of financial problem, and then meets the requirements of market participators more or less.