Research On Educational Listing Corporation Financial Distress

Since June 2006 Oriental Century listed in Singapore. In China, a total of 11high-profile, performance excellent education companies listed on the outside. However,three private education and training have delisted at present. China education group was delisted by New York in a fraud lawsuit. At the same time the remaining seven education training companies appeared different degree of loss successively around 2012.Therefore, it is imperative to study financial problems after education classes companies listed on the outside.There should alwaya be a warning before companies being in financial troble.Company executives and other stakeholders get information of financial status through studying the changes in financial indicator. In this arcticle,we analysised the financial codition of public education institutions in the way of a combination of theoretical and empirical analysis to establish forewarning model indexes for listed education companies,establishing education class index of the early warning model of listed companies, analyses the cause of financial difficulties, using the data of listed companies to empirical research, put forward the corresponding countermeasure and the suggestion,for investors, creditors and regulators and other stakeholders who have a certain reference value.Based on the theory of financial distress and early warning methods,this article analyzed the characteristics of the industry and the financial characteristics of listed companies in China’s education, combined with expected cash flow theory factor analysis theory to analyze the causes of financial distress. Finally, based on the theoretical basis and industry characteristics, to carry on the empirical research. First, the study of financial distress standard definition of this article,divided the 10 listed companies after screening into two categories, one is three already delisting educational companies, and the other is still in the listing status of seven educational company followed for the selection of 12 financial indicators normality test, T-test performed by the variable normality test, and do not meet the normal distribution of the variables using the Mam-Whitney U test, we can determine the correlation indicators of financial distress prediction model that was constructed 10 educational listed companies, and have the data conclusions explanation.Finally, according to Financial Distress model, we can draw early warning capability and strong financial indicators, and draw appropriate countermeasures.