An Applying The Z-SCORE MEDOL IN SHANGHAI STOCK EXCHANGE

Abstract

This study mainly uses the Z-score model to determine the validity of the bankruptcy risk of the listed enterprises in Shanghai Stock Exchange in 2015-2017, and further explores whether there are some differences in the accuracy of two different departments (SOE & Non-SOE) in predicting the risks of bankruptcy. Through the study of risk management, financial distress and Z-score model, the paper provides support for the application of Z-score model in Chinese enterprises. In this study, the data of 40 Shanghai Stock Exchange listed companies are analyzed, the three years ' situation is discussed, the conclusion is given and some suggestions are put forward.