Predicting Firms'''' Financial Failure Using Financial Ratios: an Empirical Studies of Chinese Firms

IntroductionCorporate failure is an essential component of anefficient market economy. As China is moving towardfree market economy corporate failure is now acommon occurrence among Chinese corporations. Theissue of corporate failure has become important to manyparties such as shareholders, banks, employees,suppliers, and customers who have an interest in thefinancial health of a corporation. Corporate failure canarise for many reasons. Some …