This paper collects samples of 42 financial distressed companies in Shenzhen and Shanghai which suffer from financial situation abnormality in 2006-2007 and matches them with 42 good financial situation companies. Then this paper chooses 8 non-financial factors of ownership structure,corporate governance and audit opinions to do descriptive statistics, and tests whether the 8 non-financial factors affect probability of financial distress by using the logistic regression models. The result shows that audit opinions have the best explanation and prediction abilities. The attendance rate of annua...
