Research On Financial Distress With Corporate Governance

Financial distress of listed companies is forecast at home and abroad has been a hot academic research, but most of the studies were limited to the use of accounting information, almost did not take into account the area of corporate governance issues - particularly the domestic scholars. However, in recent years both at home and abroad a large number of studies on the relationship of corporate governance structure and corporate performance relationship show that corporate governance structure has significantly affected the performance of the companies. Therefore, it is necessary to study corporate governance as the company's financial distress from a different angle.The main content is divided into five chapters. Introduction Chapter 1 is on the background, research issue and significance. The second chapter reviews the financial distress of the theoretical and empirical basis of research results, especially on the financial distress with the definition of the relationship between corporate governance and financial distress forecasts and the relationship between corporate governance. Chapter III and IV are the main parts of this paper. Chapter III uses of statistics, econometrics means, the financial distress of corporate governance structure and the relationship between the researches. The text will be dealt with as part of a special financial distress of the signs. In theory on the basis of the analysis of the first seven assumptions, and then selects the first half of 2007 listed companies with ST samples, and sample ratio of 1:2 choice, and ultimately choose a total of 162 companies have a total of 162 samples for observation Logit regression analysis. Finalization of the model to explain the eight variables, entered the final model explained a total of four variables: Equity concentration factor, stock checks and balances, the proportion of independent directors, the Board scale equity ratio of state-owned shares and legal person shares the proportion of shares held, the two posts unity, frequency of meetings of the Board four variables been removed. Regression results indicate that: the proportion of independent directors in the financial distress of the negative correlation with the size of the Board of Trustees of the financial distress of a weak positive correlation with the equity focus on the financial distress of the positive correlation between the equity and the checks and balances of financial distress related to the occurrence of negative, that is, equity The higher degree of checks and balances, the more vulnerable to financial distress. In order to get rid of financial distress, Chapter IV gives some proposals from the internal mechanisms and external governance environmental. The conclusion is in the fifth chapter.An Empirical Analysis of the fourth chapter, entered the model of governance indicators of the financial distress that the company must address the following two financial distress: shareholder structure, and building a certain degree of centralization, the controlling shareholder and a relative other big Existing shareholders, and that the appropriate checks and balances on the shareholding structure of the Board of Trustees, raising the proportion of independent directors, give full play to the independence of independent directors. Listed companies out of its predicament. Distress of the need to combine their companies in other departments also need national legislation, the securities regulatory departments, and other relevant departments of the guidance and effort.The empirical results of the analysis, this paper does not remain in the internal control structure perspective, but with corporate governance theory, in-depth study of the mechanism of internal control and external environmental protection factors, from simple compared to the internal control structure analysis, a more comprehensive . An Empirical Analysis of norms and use of combination, from the micro and macro levels, internal and external multi-angle to conduct feasibility studies to the financial distress and Corporate Governance Study on the relationship more systematicly.