Study On The Factors That Affect Listed Company’s Emergence From Financial Distress Based On The View Of Internal Factors

Chinese stock market has been established for more than twenty years,with thedevelopment of economy,the scale of listed companies has been expanded from “eightstocks” to over2400listed companies.But behind the booming development of thestock market,there are some crisis,some listed companies unable to adapt to the fiercemarket competition,and get into financial distress,then the power of the companies is onthe wane constantly. Many listed companies has been managed specially each yearbecause of the abnormal financial conditions since the Special Treatment regime hasbeen established in1998. Financial distress not only limits the normal operation anddevelopment of the companies,bring huge negative impact and credibility crisis,restricted refinancing,make the companies difficult to emergence from the financialdistress;but also damages the economic benefits of shareholders and small investors,andseriously impact the optimal resources allocation of stock market and even the wholesociety.Recent years a large number of studies about financial distress both at home andabroad are concentrated in prediction and cost measurement,but the emergence fromfinancial distress has seldomly studied. Therefore,research on the factors affecting theemergence from financial distress both in theoretical and empirical,can help companiestake proper measures to emergence from financial distress,and promote stock marketdeveloping in a healthy way.This paper is organized as follows.First,we provides the research background andsignificance, reviewed relevant researches,theoretical basis about financial distress bothat home and abroad,and define the concept of financial distress and emergence fromfinancial distress.Second,descriptive analysis the macroscopic and microscopic featuresof Chinese listed companies which have financial distress and which haverecovered.Third,choose special treatment companies because of the abnormal financialcondition from year2010to2010as samples,according to the revocation of specialtreatment condition,devide the samples into two parts,success part and failure part,select a variety of factors, establish a Logistic regression model, and study the interalfactors that affect the recovery of financial distress. Finally, we obtain the researchconclusions. We hope that this thesis reveals the real financial and non-financial factorsthat help company emergence from financial distress, at the same time,we hope the companies which has financial distress could take proper way to deal with it,andemergence from financial distress soon.