The Research On The Prediction Mode And Countermeasures Of Financial Distress Of Listed Companies In Chinese Manufacturing Industry

Market-oriented economy is that full of uncertain competition. With the further deepening of socialism market economy in China, the rat race brings not only opportunity but also challenge to the enterprises. In the challenging competition, some of the enterprises would entrap in the financial distress inevitably, or even leads to survival crisis.Manufacturing industry of China is the main body of national economy. Many manufacturing companies sink into financial distress in successions due to external or internal causes and go bankrupt eventually. Therefore, it is significant to set up a feasible and effective prediction model of financial distress to keep the enterprises from entrapping in financial distress.Based on the scholars’ research achievements both at home and abroad, this thesis, adopting listed companies of manufacturing industry in China as the samples, collects the relevant financial dates of50distressed and non-distressed enterprises as the predictive variable, make an analysis and set up a predictive mode. The research methods in this thesis include normative research and empirical research, principal component analysis would employed in empirical research.This thesis can be divided into five parts:the first part includes research status and relevant theoretical summary of financial distress prediction both at home and abroad. Part two defines financial distress of listed companies in manufacturing industry of China, and analyze the causes. The thirst part develops empirical study, collects the certain samples and prediction variable and set up the distress prediction mode of listed companies in China’s manufacturing industry with principal component analysis. Part four discusses the countermeasures for the listed companies of manufacturing industry in China to avoid financial distress. Part five is the conclusions and limitations of this thesis.