Research On Financial Failure Precaution Of Listed Firms

With the integration of global economy, listed firms confront more and more fierce competitions. Various factors, like virus, may infect listed firms at any moment, which results in financial failure, failing to pay off the due debts and varied fees. Especially when listed firm receives special treatment, rights of the shareholder will be hugely damaged. While the temporary deficit unnecessarily obstructs the firm's development, the high profit may conceal financial failure caused by bad capital turnover. Therefore, precaution to financial failure is much more meaningful than remediation in reality. Theoretically, among the current research literatures on financial failure, scholars almost focus on the empirical analysis of the financial warning model, paying less attention to normative research of financial failure precaution. To analyze the precaution of financial failure helps a deeper exploration of the premonition and caution in economic theory and research methodology to guide practice. Out of the above reason, this thesis, in a normative research angle, selects the ST listed firm as its subject and defines the concept of financial failure based on literature summarizing. Through analysis on the internal and external causes for listed firm's financial failure, the thesis discusses the causes for financial failure, its premonition, and countermeasures and ways to its precaution, which is the main point of this thesis. There is still limitation in this research which is listed in the final part of the thesis, and insufficiency in case study and theoretical analysis leave room for the further theoretical exploration and practical research.