Empirical Study Of Listed Company Financial Distress Warning With Non-Financial Indicators

Falling into bankrupting is a continuing process.So if users of the information can build a scientific system to hold the market with some reliable method,risk reduction becomes possible.In conclusion,it is very important to build a financial crisis warning system.Some researchers tend to use financial indicators which is easy to acquire.However,the value of pridicting was questioned due to handleability and lags of financial indicators.So whether the effect of early warning can be enhanced? Based on the above consideration,we bring some non-financial indicators which are difficult to control into the predicting model to enhance warning effect.This paper introduces the theoretical basis of empirical research,which are agency theory and corporate governance theory.Then some representative financial and non-financial indicators were choosed based on those theories.Then Komogorov-Smirnov Test. Independent Samples Test and Mann-Whitney U Test were adopted to find significant indicators.And Factor analysis was used to simplify the financial indicator.At last,the Logistic model which only include financial indicators and Logistic model which include financial indicators and non-financial indicators were compared to find whether the latter is better.The answer is Yes.The innovation of the article is that the selection of indicators is based on two theroies. And the samples are listed compnies which are special treated for the first time after2001when the independent director system was established and2002when the reform of non-tradable shares was implemented.What’s more,paired samples were choosed due to principle of1:2.And there industry,capital,products and primary business are similar to the sample listed companies who are special treated.