Research On Financial Distress Management Of Chinese Listed Company

As there are so many bankrupt cases caused by finance crises, people are forced to reconsider the importance of finance crisis management. But the reasons behind the corporate finance crisis are so complicated that they will influence the selection of the finance crisis model variables and the effectiveness of the policy to deal with finance crisis.This article uses the panel data of listed companies in China capital market, uses "ST" as the signal of the corporate sinking into finance crisis, integrate the perspective of company management and company governance, combine standardization research and empirical research to study the process of finance crisis formation. Discuss variable selection of the finance crisis forecasting model and the measures should be taken.the content of this article can be summarized in the following three points.1. In the research of the reason of finance crisis, this article choose 113 companies being Specially Treated (ST) for "financial position abnormal "added from 2004 to 2006, and choose 113 matching samples according to the same industry and similar capital scale principle, selecting seven feathers such as debt-paying ability, operation capability, profitability, development ability, cash flow capability, equity structure, corporate governance and so on. Contrast analyzing the feathers of those companies during three years before they were being Specially Treated (ST) and give a empirical test of the behind reasons. The result of the test shows, the root of causes behind the finance crisis of Chinese Listed Corporate is Principal-Agent Relation, concrete details includes finance factors like unreasonable assets structure, poor core business and non-finance factors like equity structure, unreasonable corporate governance structure and some other factors.2.As to the forewarning of finance crisis, based on the conclusion that equity structure influences the finance crisis, this article adopts non-finance factor, equity structure, into the system of predicting finance crisis, and separately adopts Discriminate analysis(Fish discriminate), Logistic regression analysis to study the forecasting of listed companies finance crisis. Through the empirical study, the result shows when bringing the variable of equity structure, the forecasting ability of the model reaches to the highest lever, proved that we can improve the forecasting ability of the model by bringing the variable of equity structure into the research area of finance crisis forecasting. On this basis, this article combines the three concepts, board structure, corporation performance and finance crisis, pose an non-finance index-board structure, which is useful to the research of finance crisis forecasting.3. In the part of handing the finance crisis, based on the research of finance crisis causes, this article divided the sample companies by whether they get rid of "ST" or not in 2 years.contrast analyzing the feathers of those companies for the first years before getting "ST" and two year after getting "ST". and give an empirical test of the policy handing the finance crisis. Those policies include finance solutions like adjusting asset structure, reorganizing assets and non-finance solutions like adjusting equity structure and reorganizing corporate governance structure. Finally this article give several suggestions, which are minimizing liabilities, operations reorganizing, merging with other corporates, Asset-Replacement, reasonable arrangement of equity structure and reduce agency cost and so on.