37 heavy deficit companies and 37 non-deficit companies from listed companies in Shanghai & Shenzhen Stock Exchange are selected as samples for study and a binary Logit model is established to predict the probability of heavy deficit.

In order to reflect truly all the financial conditions and operating performances of the parent company it is very important to measure and confirm the excess deficit of the subsidiary company in the consolidated accounting statement.

Cheng,et al(2002) investigate the asymptotic behavior of the -moments of Au,that is the average deficit in some way,in a renewal insurance risk model,under the assumption that the distribution of the claim size belongs to the class S(γ),γ≥0.