| Summary: | 碩士 === 國立政治大學 === 會計學系 === 107 === Logit analysis and discriminant analysis are two of the most widely used statistic technologies in financial distress prediction model. In this study, we use these two alternative prediction models to examine whether financial ratio variables and non-financial variables are useful in predicting financial distress in Hong Kong main board market. We find that debt ratio, return on equity, operating cash flow ratio, earning per share, and auditors’ report with modified opinion are shown to be significant predictors. Predictive accuracy of logit analysis model and discriminant analysis model are 90.48% and 81.75%, respectively, it is possible that logit analysis model is shown to be the optimal prediction models in Hong Kong main board market.
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