Discrimination models of the financial crisis of listed companies and its application

This paper regards 100 listed companies of our country (50 ST companies and 50 non- ST companies) as the researched sample. The data of this sample come from Shenzhen Stock Exchange and Shanghai Stock Exchange. This paper aims at setting up a discrimination model with a few variables and getting a good resultand it can be used in analyzing financial state of listed companies in different trades. This paper introduces the cash How index. It chooses 7 indexes as predicting the variable from all financial indexes of listed companies. This paper uses Linear Discrimination Model and Logistic Regression Model to set up two kinds of discriminate models for predicting the financial state of listed companies, and the comparison is made with two models.