The Empirical Research On Liquidation Or Reorganization Of Listed Company In Distress

In present , there are more and more listed companies in distress . The phenomenon causes more and more people extensive attentions, as the company in distress not only increase investor ' risk but also make the stock market unstable . The research in our country on financial distress prediction . There is no research on distinguishing companies that reorganize from those that liquidate or continue operating . This papers investigate whether companies that reorganize can be distinguished from those that liquidate under coalition theory . In addition , performance of reorganized companies is examined to determine variable that distinguish "successful"from "unsuccessful"reorganizations. The result of the analyses have implication for prospect for financial distress companies . There are three typical characters .The first characters is sample included " ST " and " PT " companies . The second is to use coalition theory to develop model . The last is to develop two logistic regression model to investigate the question of reorganization and bankruptcy .There are five sections in this papers. The first section is preface and introducing the background , the contents , and conclusion of research . The second is literature summary of international and national relating to financial distress model and bankruptcy reorganization procedure . The third is analysis of theory ,drawing on base theory , coalition theory , and development propositions . The fourth is empirical research . The first model investigate whether companies that reorganize can be distinguish from those that liquidate . The second model is developed as a comparative model that examines whether the same variables can be distinguish "successful " reorganized companies from "unsuccessful " reorganized companies . The last is conclusion of research .The concrete conclusion is the following:1,There is remarkable relevant between Earning per share and company in distress that is liquidated or reorganized.2,Equity per share and company in distress that is liquidated or reorganized have remarkable relations.3,The proportion of holding share has played important role in distinguishing companies that reorganized from those that liquidated.4,The receivable turnover is not remarkable influence on investigating whether companies that reorganized can be distinguished from those that liquidated.5,Except Earning per share , all variables have not remarkable influence on distinguishing "successful" from "unsuccessful" reorganization.