Notice of Retraction: Study on reason of financial distress of Chinese listed corporation

Abstract

Based on the forefathers' research, this paper made an empirical study on reason of financial distress. We chose the panel data of new ST companies between 2004 and 2006 and used the method of Logistic regression to find the result. The empirical results indicated that not all the countermeasures we chousen are effective. At last, we got our conclusion that the indicators of current ratio, cash flow leverage ratio and legal person shares of companies had a negative correlation with the probability of financial distress.