The Dominant Interests Of Key Stakeholders Turned To The Small And Medium-sized Listed Companies

The small and medium sized enterprises (SMEs) occupy an important place in Chinese economy. However, they usually don't have a long life and easily fall into financial crisis. If they want to keep their position in the market, they have to challenge the survival crisis. When their performances become bad, they should try to change the situation. This process is called turnaround process.Many foreign experts have researched the turnaround process of the enterprises, but there are few domestic experts do the similar researches. However, few of all these researches concern stakeholders. There are deferent background and culture for Chinese enterprises and Western. And these will greatly affect on Chinese enterprises and their turnaround processes. So this paper researches the relation between the explicit benefit of the main stakeholder and the turnaround of the SMEs. And it will help the SMEs to achieve turnaround.This paper selects 96 listing SMEs which were in the turnaround situation between 1998 and 2007. Then this paper analyses the sample data by the binary logistic regression. This paper firstly analyses the correlation between the explicit benefits of every stakeholder and the turnaround of the SMEs. It found that there are positive correlations between them. Secondly we introduce the explicit benefits of the every main stakeholder step by step in the researching process. The result is that if the explicit benefits of the stakeholders which are closer to the enterprises in the non-financial stakeholders are satisfied, the enterprises have more chance to achieve the turnaround. When the whole explicit benefits of the main stakeholders are considered, the explicit benefit of shareholders, creditors and managers are more satisfied and the turnaround is more easily to be achieved. At last, this paper analyses the correlation between the explicit benefits of the whole main stakeholder and the turnaround of the enterprises and builds the forecasting model. The model has good capacity of forecast and gets the similar conclusions to the model of step by step.