The Warning Study Of Delisting Risk Of Listed Companies Based On Financial Indicators And Non-financial Indicators

While the new round international financial crisis is not completely faded, numbers ofexcellent enterprises in China are decreasing in2013, to make matters worse, moreenterprises are faced with huge risk. As more stringent listing system is put into practice inChina, it is foreseeable that growing number of listed companies will delist. So financial early–warning to delisted company in advance is undoubtedly of great significance to thosestakeholders.In the past, the financial early-warning research of domestic company is mainly based onfinancial indicators, and take ST as the financially troubled company boundaries to predictenterprise financial situation. However, it is not comprehensive and in-depth to analyze thereasons of enterprise financial distress only based on financial indicators. to overcome thisdefect, this dissertation introduces non-financial indicators into the financial early-warningsystem. Take ST as financially troubled company standard is of certain desirable, but,compared with foreign country which take the standard of bankruptcy as the company’sfinancial distress, there is still a big difference that ST companies will not always bankruptcy.This article take delisted as deep financial predicament, explored the financial early-warningof listed company. On the basis of previous research, this dissertation use the method ofempirical study to predict the risk of delisting of listed companies in our country, expecting toprovide some reference for the research of financial distress.The dissertation, took33listed delisting companies of manufacturing industrycompanies and it’s matched samples as financial distress research samples, select30financialindicators and7non-financial indicators, and confirms the model variables with T-test and thecorrelation analysis, eventually determined the warning indicators of the model in5years to2years before companies delisted. By adopting logistic regression analysis and set up8modelsbased on different periods and indicators,8models, including the financial models based onfinancial indicators and the comprehensive models based on financial indicators andnon-financial indicators, are established and the dissertation analyzed the validity of the8models．Results showed that the financial indicators and non-financial indicators of listedcompanies have significant effect on financial distress and the introduction of non-financialindicators can increase the prediction ability of early-warning model. At the same time there is a certain difference between delisted companies and listed companies. Therefore, delistingrisk early-warning model is a complement to delisting system of our country.