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A Study On The Corporation Financial Distress

Posted on:2004-01-04Degree:DoctorType:Dissertation
Country:ChinaCandidate:J WangFull Text:PDF
GTID:1116360092980648Subject:Management Science and Engineering
Abstract/Summary:PDF Full Text Request
In the west, corporation financial distress is an important question for study in the financial fields, however there is little study on this question in our country and that is not correspond with the development of the market economy, for this reason, this article is systemic studyon the financial distress costs, the method of financialdistress forecasting, the selection of financial ratios and financial structure selection based on the practical situation of our country.s corporation and the Sino-foreign achievement on the subject. Considering the study of financial distress costs: In the past, the researching object of financial distress costs is real costs, but not expected costs, although the latter was first emerged in the Trade-off theory. The article differentiate between the expected financial distress costs and real financial distress costs, and discuss the former,analyze the Yuval.s researching, and find his method based on DCF mayunderestimate the expected financial distress costs and on his searching, use the real option instead of DCF method to calculate the corporation.s value and estimate theexpected financial distress costs. On the study of financial distress forecasting: the article aims at the out of order in the financial ratios selection, brings about the jointly qualitative and quantitative selection method. Firstly it gives the primary selection principle of the ratios, then brings forward a variable selection way on ANN and makes the primary selected rate to filtrate and de.dimension. The article defines the ST corporation (in the domestic capital market) to the financial distress corporation, using the data of that todemonstrate the rate.s selection way and verify the rationality and practicability by MDA and ANN. The test result proves that the jointly qualitative and quantitative selection method is scientific and validity. At the same time it shows that on the base of the existing forecasting method, selecting financial ratios reasonably couldimprove the financial distress forecasting accuracy, according to the different study object. Financial structure selection according to financial distress: on the base of Trade-offtheory, the article studies the relation between financial distress and financialstructure ---- discussing how to make a reasonable financial structure to prevent a financial distress. Finally on the base of GregorAdrade.s Latent period criterion,demonstrate the article.s result jointly the real data in the Chinese capital market.
Keywords/Search Tags:financial distress, financial distress costs, financial distress forecasting, financial ratios, financial structure, real option, trade-off theory.
PDF Full Text Request
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