The Reasons And Control Of Financial Distress Of Listed Corporation

The listed corporations are excellent representatives of corporations in our country. They are more perfect not only on operating but also on corporate governance. Recently the number of the listed corporations has greatly increased, but at the same time the number of the corporations which are making a loss are increasing too. More and more corporations are suffering financial distress. Financial distress brings great losses not only to the stockholders and creditors, but also to the whole society. So it's of significance to study the reasons how the financial distress comes into being so that the corporation can find it in advance and solve it. Firstly, the paper will analyze the domestic and foreign studies about financial distress, summarize advantages and disadvantages of the different methods, accept the distillate and reject the draff. Then we will study the listed corporates which were special traded from 1998 to 2002 based on their financial reports. We will classify the reasons of financial distress scientifically and statistic the reasons in detail. At last, we will analyze the approaches and measures of financial distress further. .