Study on Improving Z-score Model Based on the Logistic Model: Evidence from Listed Companies in China

In this paper, based on the analysis of the Altman Z-score model, a new research instrument was proposed for the research method. In this paper, 41 ST companies and 41 non-ST companies were taken as samples, seven of the 20 financial indices two year before the financial distress of ST companies were selected as prediction variables and finally the financial distress model was set up with logistic regression analysis. The results showed that compared with Altman Z-score model, the new model is of better prediction effect.