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Correction Z Model Of Empirical Research, Based On Corporate Financial Distress

Posted on:2005-08-10Degree:MasterType:Thesis
Country:ChinaCandidate:G HuFull Text:PDF
GTID:2206360122496846Subject:Business Administration
Abstract/Summary:PDF Full Text Request
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. This paper, based on the financial distress situation in Chinese market, is aimed to find a better financial distress model for the ST companies by modifying Altman Z-score model.It had reviewed the researches on the financial distress prediction model at home and abroad, analyzed and summarized the Altman Z-model so that some new research instrument has been proposed for the research samples design, the selection of variants and statistic method. In this paper, 41 ST companies and non-ST companies were taken as samples, Stepwise Regression Analysis were used , seven of 20 financial indices two year before the financial distress of ST companies were selected as prediction variants and finally two financial distress models were set up with Fisher Discriminant Analysis and Logistic Regression Analysis.The results showed that compared with Altman Z-score model, both of these two models are of good prediction effect, with more precision to predict the financial distress for public companies.
Keywords/Search Tags:financial distress prediction, Z-score model, Fisher Discriminant Analysis, Logistic Regression Analysis
PDF Full Text Request
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