Financial Crisis Response

In a market of competing heavily, more and more enterprises experience the distress of bankruptcy because of lack of ability that solves the financial problem in financial distress. Even some famous international corporations still can suffer from financial problem. For example, Anron, which was the biggest electric and natural gas trading company in the United States and played an important role in the global energy products trading market, suddenly goes into bankruptcy within almost one night because of financial problems. Moreover, during the process of globalization of economy in the world, economic cooperation between firms and countries are increasingly popular. However the closer relations between enterprises can result in domino effect when one of firms is in financial problem. Thus, how to deal with financial problem is an important issue for all firms. Modern enterprises have to improve the abilities not only to recognize the financial distress but also to react quickly and effectively the financial distress so that they can avoid the spread of financial distress.The purpose of this thesis is to analyze how to deal with financial distress by combining forecast financial distress and solving this distress. The thesis includes three sections: the first section discusses main opinions of financial distress, three characteristics of financial distress and types of financial distress according to three different criterions; section two reviews the distress management theories, explains five functions that financial distress managements should have and creates the system of financial distress management including forecast of financial distress and solving of financial distress; the last section illuminates the details of how to predict financial distress and how to solve financial problems.This article research is embarks from the financial distress basic concept, with the aid of the enterprise distress management theory, carries on in under the finance distress management frame. Including three parts of contents: The first part mainly elaborated domestic and foreign about...