Analysis Of The Right Disposition Effect Of Financial Distress In SOE

It is frequently happened in the world that many enterprises are caught into financial distress which leads to bankruptcy. Financial distress will bring giant loss to enterprise and affiliate parties, thus, how to avoid financial distress and make financial management work well is crucial for enterprise.In early times, most of analyses on financial distress focus on the precaution analysis of financial distress. It warns the financial distress with financial index of company or judge appearance of financial distress with events. In fact, using performance after event to predict financial distress is conflicting in logics and financial index also has posterity when disclose it .Thus, similar precaution analysis seems not too late, but if the enterprise has been bankrupted because of financial distress, the precaution analysis is useless, so that more and more researcher focus on reason for financial distress not precaution.Financial distress is the result of many factors and a lot of researchers analyze financial distress from the point of corporate governance. In fact, it analyzed the fundamental reason from the rule, so it is deeper than analyze according to events or index. Normally, we think that the reason for financial distress is bad internal management. However, external environment will also lead to financial distress. Aim at characteristics of state-owned enterprise, the thesis started with events analysis and redefined concept of financial distress. It pointed out expression of financial distress and mark of beginning and end. It also analyzed reason for financial distress of state-owned enterprise both in internal management and external environment and pointed out special reason of financial distress for state-owned enterprise.As analysis on special reason for financial distress in state-owned enterprise, the thesis discussed how right disposition in state-owned enterprise lead to financial distress by influence these special rules. In the end of thesis, it analyzed the way of right disposition aiming at normal reason of financial distress of state-owned enterprise and influence of right-disposition.