Can the modified ESG-KMV logit model explain the default risk of internet finance companies?

With the rapid development of internet finance in China, risk management has become an urgent issue. This study analyzes factors that affect default Chinese companies based on measuring distance to companies. incorporates ESG rating into evaluation model comprehensively reflect factors. The traditional KMV is modified with rating, and results are used construct panel logit model. Based firms listed China A-Shares data from 2016 2020, our show following: first, ESG-KMV can effectively analyze influencing risk. Second, ROE, accounts receivable turnover ratio, asset-liability ratio z-value important Third, it also found COVID-19 significantly impacted As a policy implication, regulator incorporate measurement create more awareness among importance environment sustainability human societies.