Research On The Reasons And Coping Strategies Of Zhejiang Jiaotong University's Financial Difficulties

In recent years,the economy of our country has been developed rapidly.There are more and more companies in the market.The space for survival and development of companies is constantly being challenged.The number of companies in financial distress and the frequency of the same company in financial distress are also increased.With the gradual improvement of the economic ecological chain,a company fall into financial distress will cause the relevant companies to have different degrees of financial crisis.Therefore,the financial crisis or even the financial distress of the company will not only affect its own survival and development,but also may affect its own industry.It may also have serious adverse effects on its industry and even the entire industrial economic chain.This article adopts the case analysis method.Research the whole process of Zhejiang Jiaoke from falling into financial distress to successful recovery.First of all,sort out the related dilemma events that caused the financial distress of the company: the subsidiary Jiangning Chemical suffered serious losses,the large debt of the subsidiary was passed on to Zhejiang Jiaoke,the main business of Zhejiang Jiaoke suffered large losses and the performance of the assets reorganized subsidiary has suffered a serious decline.Analyze the causes of each dilemma event in a targeted manner.There are mistakes in investment decisions,cyclical fluctuations in the industry,improper control of period expenses,weak asset restructuring ability to resist cyclical risks,single financing channels and the awareness of risk prevention is weak.The second is to introduce the company’s recovery,and summarize the strategies from four perspectives: asset reorganization,financial reorganization,corporate governance reorganization,and strategic operation reorganization.Use event analysis,free cash flow and financial indicators to analyze individual governance effects and comprehensive governance effects of governance measures.The short-term market response to the business reorganization and financial reorganization in the asset reorganization is positive and will greatly help the improvement of long-term operating performance.Corporate governance reorganization and replacement of management usually react negatively in the market,but in the long run it will help companies develop high-quality new core businesses.The strategic operation reorganization has a significant effect on the improvement of corporate cash flow,which is conducive to the improvement of corporate financial status.Finally,a risk early warning analysis is carried out on the follow-up operating conditions of Zhejiang Jiaoke after being out of trouble.And based on the analysis results of the risk early warning model,suggestions are made for the follow-up development of the enterprise.This article finds that restructuring measures have a significant effect on helping companies get out of trouble.However,if companies want to successfully get out of trouble,it is difficult to achieve their goals by focusing on restructuring in a single direction,and multiple restructuring measures should be used in combination.In addition,although the company has successfully escaped from financial difficulties,new financial risks will continue to arise with the development of the company’s operations.The company should always remain vigilant and establish a sound financial risk early warning mechanism in order to take timely countermeasures and ensure the long-term operation of the company.