Research On The Financial Distress Based On Corporate Governance For Listing Companies In Our Country

In the past of half century, financial distress badly affected the operation of enterprise,the risk of credit institution and the benefit of investor, so much as the economy development of a country. Especially, in Asia financial storm, the phenomenon that microenterprise financial distress lashed the stability of macro financial system, made the research of financial distress to become a important part of financial risk evaluation. Along with the course continually being in depth about reformation of economic system and reformation-opening in our country, listing companies that is at competitive market environment will consequentially be faced to the challenge of financial distress. Thereby, it is becoming pop topic at financial risk field of our country that analyzing the deep-seated causation of financial distress for achieving the purpose of exactly forecasting and effectively keeping away it.Traditionally, people were used to analyze the causation of financial distress from the factors that was concerned by the generic theory of economy and management. This thinking was based on the basic hypothesis that the system was perfection, namely when we thought over the financial problems of a enterprise, it was implied that enterprise had a good system arrangement, but this practice just covered up the effect that the institutional factors influencing on the financial action of enterprise, the enterprise still was a"black-box". This paper just systematically connects the corporate governance and the financial distress, and studies the financial distress of listing companies in our country under the view of corporate governance.This paper is divided into three parts. The first is the theoretical analysis. Under the summarization of the foreign and domestic literatures, this part describes the basic theories and techniques in the field of financial distress. At same time, this part discusses the correlative problems about corporate governmence, and analyzes the generic relationship between corporate governance and enterprise finance in virtue of the newest cognition about the essence of finance. This part finds that government factor has been planted into the morden system of enterprise finance that is driven by the hypostasis of financial right flowing which is based on the thinking of property right, corporate governmence commonly influences the financial action of enterprise from three routes:①corporate governmence→enterprise management→enterprise finance;②corporate governmence→financial governmence;③corporate governmence→financial governmence→enterprise finance; moreover, the fundamental station of corporate governmence in enterprise system decides its validity to has fundamental guarantee function for the financial safety of enterprise, moreover financial distress is the typical non-safety form of finance, so it must be influenced by corporate governmenc too.The second part is the empirical analysis. This part uses the date of listing companies in our country, and is in the frame of time at 2, 3, and 4 years before fincial distess, to at first empirically analyze the weak characters of corporate governance about the listing companies of financial distress, at same time, through building the models to discuss the factors of corporate governmence that have obviously influence on the listing companies going into the situation of financial distress; than through importing the indexes of coporate governmence into the forcasting models of financial distress, this part more demonstrates the forecasting effect of the indexes of corporate governmennce for financial distress; at last, this part solely buildes the forecasting models of financial distress using the listing companies in manufacture industry, to discusses whether there is the influence when we take account the industry factor into the forecasting of financial distress. These empirical studies get the following conclusions. (1)Comparing with the good listing companies, the listing companies of financial distress have some remarkably weak characteristics at the level of corporate governmence before they going into the situation of financial distress; (2)Some corporate governance factors, such as the character of holding-shareholder, the character of directorate, the incentive and constrained mechanism, the experience and environment of governance, have significantly influence on listing companies going into financial distress. (3) It will amend the forecasting effect of financial distress when we import the indexes of corporate governance into the forecasting model of financial distress, especially at the forepart of financial distress. (4) When we develop the forecaating model of financial distress, it is a good way to go along with different industries, this way will more amend the forecasting effect of financial distress.The third part is conclusion. According to the theoretical and empirical results, this part brings forward some countermeasures and advices in view of corporate governance for keeping away financial distress. In a word, this paper thinks under the modern finance system of enterprise, the safe extension of enterprise finance has been enlarged into the lay of corporate governance, moreover, the status and function of corporate governance in enterprise decide that the influence about corporate governance on the financial safe of enterprise is foundational, and this foundation not only frames the finally direction of the the financial action of enterprise, but also decides that it nearly correlates with the level of corporate governance whether the process of financial action is in favor of the development of enterprise. So, it is a important route to keep away financial distress through enhancing the system of corporate governance, perfecting all kinds of the mechanism in corporate governance, restraining the invasion about the behave of opportunism on enterprise finance.