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The Improvement of Z-score Model Based on Listed Company of “Non-Metallic Mineral Products” Industry in China

  • Dan Zhang
  • Jing Hou
  • Yue He
Conference paper
Part of the Lecture Notes in Electrical Engineering book series (LNEE, volume 241)

Abstract

At present, there are many research about Z-score model that mainly aimed at the financial warning of listed companies at home and abroad, but the research rarely involve the different categories of listed companies. This paper, using the actual data of listed companies in “non-metallic mineral products” industry and five financial indexes of Z-score, establish Z-score model with the needed indicators and determine the warning threshold. The coefficient of Z-score model is corrected through multiple linear regression model. The model is applicable to “non-metallic mineral products” industry in China. Evidence shows that the model has higher accuracy than the original model for listed company of “non-metallic mineral products” industry in China, and it provides a safe and reliable financial warning standard for “non-metallic mineral products” industry.

Keywords

Z-score model Financial early-warning Listed companies Nonmetallic mineral products industry Multiple linear regression model 

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Copyright information

© Springer-Verlag Berlin Heidelberg 2014

Authors and Affiliations

  1. 1.Business SchoolSichuan UniversityChengduPeople’s Republic of China

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