Enterprise Financial Crisis Causes And Countermeasures

The good or bad of a enterprise financial affairs condition often is the focal point that investment person, creditor and enterprise itself concerned. If the financial affairs of enterprise is healthy and its operation is good , not only can raise enterprise's prestige on markets and expansion fund-raising channels at markets, but also can make the investor full of confidence. On the contrary, when an enterprise fall into financial predicaments or close to bankrupt, it weak to absorb investment. And original investor was forced to face the enormous credit risks. Therefore if the enterprise financial distress signals could be found at an early date , management person will take some effective measures and improve enterprise's management to guard crisis in time. Based on this motive , the paper develops a discriminant analysis model on the basis of studying the cause of the enterprise financial distress . The model can be applied directly and effectively to the enterprise financial distress in different trades . Author puts forward some views about how to prevent financial distress occurring and what should be take in a enterprise financial distress.This text includes six chapters . Chapter one, the meaning and present situation of enterprise financial affairs crisis research .In this part, I briefly reviewed the research meaning and the present situation of studies in home and abroad about financial distress. Chapter two, the definition and the characteristic of enterprise financial distress. In this part, I introduced enterprise financial affairs and financial affairs management definitions first, and then I gave a detailed description about the definitions of enterprise financial distress, which defined the scope about financial distress. Chapter three, the sign of enterprise financial distress. In this part, I explained the omens of financial distress. Chapter four, The analysis about causes that result in the enterprise financial distress. In this part, I follow respectively management and the financial affairs when I analysed the causes. Chapter five, The countermeasure ofenterprise financial distress. In this part, I gave a detailed description about effective countermeasures that could prevent and control financial distress. Chapter six, The case analysis. In this part, I analyzes Hunan SanLi Passenger Train Group as the authentic proof ,together with the preceding chapters formed a complete research system .