Research on Listed Firms' Financial Distress Prewarning Based on a Longitudinal Data Envelopment Analysis

摘要

As listed firms' financial distress is not always occasional, it is necessary to consider dynamic change of the firms' financial condition when the firms' financial distress is pre-warned. In this paper, a longitudinal data envelopment analysis is employed to consider dynamically the listed firms' financial condition, and every listed firm in various periods is viewed as various decision making unit. Firstly, make certain a window which means one period. Secondly, evaluate the decision making units in every window with data envelopment analysis and make an estimate of dynamic change of every decision making unit's financial condition to pre-warn decision making units' financial distress. And then an empirical case shows the feasibility and validity of the method that is put forward in this paper.