China's Listed Companies In Financial Distress

Since on century 30's,the empirical research on enterprise's financial crisis always has become the unfailing topic in the international financial area, accounting area and security investment research area. At present the financial crisis research in domestic has followed up the western's, but there are still a long way to go to reach the level of the western's not only in research methods but also in research angles. Fundamentally speaking, the difference has reflected the research environment was lag in our country in past time. Along with the deepening of our country's market economy system reform and the development of the capital market, it urgently needs to set up the forecasting system of enterprise's financial crisis.How to define financial crisis is the fist question to research the financial crisis. There are many different definitions in western, such as legal bankruptcy, incapable payment of short debts, incapable payment of bond interests and so on. The domestic scholars also have different definitions on the financial crisis. In usual situation it refers to a process including slight finance difficulty, the bankruptcy and all kinds of situation between them. In the empirical research, the listed companies always become the object of the researchers in our country. And the symbol of financial crisis is"Special Treatment (ST)".The reason to choose the listed company is that the financial data of non-listed companies are always incomplete and the format of financial report is not standard.In the article, the definition of financial crisis is consistent to other scholars'in our country. But the different is that the author defines"ST"as crisis symbol in 2003 and 2003 while"*ST"in 2004 according to the system reform in our country's security market.There are many literatures on financial crisis pre-warning research...