Research On The Financial Risk And Control Of ST Company

The China Securities Regulatory Commission issued the "Notice about the special treatment to shares of the listed company in abnormal situation ,"in March 16, 1998. So far,258 listed companies get"special treatment" in Shanghai and Shenzhen stock markets.Therefore, a viable management strategy is urgently needed to solve the involved financial risks the 258 ST company mentioned above is mainly in the sunset industry or the business in fierce competition such as trade,tourism,real estate.In terms of the listed companies that get ST,most of them take measures like asset restructuring and debt separation,which nearly has no effect,so that the listed companies lost themselves in financial distress unavoidablely and even go bankrupt.This essay picks the real estate industry which is very competitive these years as the research object, selects 12 real estate ST company's financial data to make financial analysis, proposes the risk symbol of ST company shares down, sales down, long period inventory turnover and payback, Besides, it also elaborates some risk characteristics, such as objectivity comprehension, uncertainty, coexistence of income and risk, weighing. To make further explanation, this essay summarizes the risks of ST companies in operating funds, investment, financing, and also gets the risk causes, for example, the irrational organizational structure, financial officers not knowing deep of risks. At last, this essay lays the theoretical basis for the further control measures.This article is divided into six parts: Part I is an introduction, describes the research background, the domestic situation for the study and research purpose and significance; second part is the theory chapter on the financial risk and control related theory; Section III ST formation mechanism of financial risks, this chapter introduces the company's profile and status of ST, then to 12 ST Real Estate Index for the financial analysis of samples from the macro-financial risks of ST summarized the causes and characteristics of the control measures for the following pave the way proposed; fourth part case study, select the ST re-analysis of real object as to extract the financial data between 2005-2009, its operational capabilities, profitability, some practical value, but also for the last part of the control measures to do the groundwork practice; the last part of the financial risk control measures proposed for the third part analyzed the causes for investment, financing, operation, organizational structure, legal norms such as countermeasures, Hope to give some constructive suggestions to ST companies .