An analysis of short-term corporate financial distress early-warning models

Abstract

This paper introduced theoretically financial distress and early warning mechanisms, including the plight of the meaning of the formation process, diagnosis and analysis and the financial distress prediction models. It used three statistical methods of short-term corporate financial distress prediction model systems, including univariate model, Logistic regression model and Fisher's discriminant model and makes comparison and analysis of the results. According to the results, the 3 types have performed well, which the accuracy rates were basically more than 80% (Univariate model only referred to the return on total assets model).