Bankruptcy Prediction Model in China: Prediction of Financial Distress in Listed companies of Chinese Manufacturing Industry

The establishment of prediction model for financial distress is not only for the interests of the wide stakeholders, but also to maintain a healthy and stable environment for the development of stock market. This paper starts from the definition and drivers initiating financial distress and then dra...

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Main Author: Liu, Xuanxuan
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2017
Subjects:
Online Access:https://eprints.nottingham.ac.uk/45854/
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author Liu, Xuanxuan
author_facet Liu, Xuanxuan
author_sort Liu, Xuanxuan
building Nottingham Research Data Repository
collection Online Access
description The establishment of prediction model for financial distress is not only for the interests of the wide stakeholders, but also to maintain a healthy and stable environment for the development of stock market. This paper starts from the definition and drivers initiating financial distress and then draws support from previous scholars on developing the model. This paper targets “ST” companies in Chinese manufacturing industry in 2017. 24 ST companies and 24 non-ST companies are identified as control groups. Logistic regression is applied to build financial distress warning model. With introduction of state ownership into the model, with the aim to explore potential influence imposed by government to protect state-owned companies, this paper injects new vitality and impetus into research on prediction of financial distress. Important contribution of this paper includes discovering financial indicators that play an important role in prediction of financial distress, refining previous logistic model by extending time scale and undertaking more detailed analysis on manufacturing industry. The paper finally provides an appropriate model for prediction of financial distress for listed companies in Chinese manufacturing industry.
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format Dissertation (University of Nottingham only)
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language English
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spelling nottingham-458542018-04-10T15:34:58Z https://eprints.nottingham.ac.uk/45854/ Bankruptcy Prediction Model in China: Prediction of Financial Distress in Listed companies of Chinese Manufacturing Industry Liu, Xuanxuan The establishment of prediction model for financial distress is not only for the interests of the wide stakeholders, but also to maintain a healthy and stable environment for the development of stock market. This paper starts from the definition and drivers initiating financial distress and then draws support from previous scholars on developing the model. This paper targets “ST” companies in Chinese manufacturing industry in 2017. 24 ST companies and 24 non-ST companies are identified as control groups. Logistic regression is applied to build financial distress warning model. With introduction of state ownership into the model, with the aim to explore potential influence imposed by government to protect state-owned companies, this paper injects new vitality and impetus into research on prediction of financial distress. Important contribution of this paper includes discovering financial indicators that play an important role in prediction of financial distress, refining previous logistic model by extending time scale and undertaking more detailed analysis on manufacturing industry. The paper finally provides an appropriate model for prediction of financial distress for listed companies in Chinese manufacturing industry. 2017-09-12 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/45854/1/dissertation%20final.pdf Liu, Xuanxuan (2017) Bankruptcy Prediction Model in China: Prediction of Financial Distress in Listed companies of Chinese Manufacturing Industry. [Dissertation (University of Nottingham only)] Financial distress key performance indicators state ownership logistic regression early-warning mechanisms
spellingShingle Financial distress
key performance indicators
state ownership
logistic regression
early-warning mechanisms
Liu, Xuanxuan
Bankruptcy Prediction Model in China: Prediction of Financial Distress in Listed companies of Chinese Manufacturing Industry
title Bankruptcy Prediction Model in China: Prediction of Financial Distress in Listed companies of Chinese Manufacturing Industry
title_full Bankruptcy Prediction Model in China: Prediction of Financial Distress in Listed companies of Chinese Manufacturing Industry
title_fullStr Bankruptcy Prediction Model in China: Prediction of Financial Distress in Listed companies of Chinese Manufacturing Industry
title_full_unstemmed Bankruptcy Prediction Model in China: Prediction of Financial Distress in Listed companies of Chinese Manufacturing Industry
title_short Bankruptcy Prediction Model in China: Prediction of Financial Distress in Listed companies of Chinese Manufacturing Industry
title_sort bankruptcy prediction model in china: prediction of financial distress in listed companies of chinese manufacturing industry
topic Financial distress
key performance indicators
state ownership
logistic regression
early-warning mechanisms
url https://eprints.nottingham.ac.uk/45854/