Empirical Research on Financial Risk of Chinese Listed Companies

The author adopted Altman´s Z model which has been widely used in the whole world to calculate and analyze according to the 100 Chinese listed companies´ financial statistics which has been selected casually by computer from the A stock market in China. The author found that the Z value is unstable but the whole trend is better compared to the former years. Finally, the author has found some microcosmic problems. In the empirical study, the author has found Chinese listed private companies´ financial risk is higher than that of the listed state-owned enterprises. From the aspect of the trend, the stability of Chinese listed private companies´ financial situation is worrying. We can conclude that Chinese listed companies´ financial risk will be higher and higher because of the fierce competition in the market.