Empirical Research About Financial Distress Costs Of A-Share Listed Companies Based On Corporate Governance

In September 2008, America’s subprime crisis that swept through the global financial crisis, influenced all fields of the real economy, in May 2014, put forward the economy under the new normal slow economic development speed,the listed companies which were the main force of the development of economics suffered from the brunt and some of them were in financial trouble even were declared bankrupt. In the social context of the intense competition of the market economy, accurate measurement financial distress cost can provide reference for listed companies in order to be out of financial trouble.This paper carries on the analysis using the theory and the empirical and is divided into four parts.First part: analyzing the research background, significance, related concepts, related theory, research contents, research methods, technical route and the innovation points and shortcoming of this article which is of A-Share listed companies.Second part: according to the actual situation of the listed company of our country, firstly the data of ST companies in 1998-2014 is selected as the research samples, and through the single sample T-test from “the concept of business performance” and” equity values” by measuring sufficient proof of listed companies in China should assume certain financial distress cost during the dilemma, then comprehensively analyzing the cause of financial distress and forming process. The result is that the corporate governance and external macroeconomic are the main factors that lead to listed companies in financial distress. Finally, selecting appropriate indicators that are related to the corporate governance is to be assumedly analyzed.Third part: this part is the core of this paper, by contrast of ST-samples and the ST-samples in order to explore the difference of the impact of financial distress. Then using regression analysis and correlation analysis method to study the impact of the financial distress cost factors and the relationship between the cost of financial distress from the perspective of the “equity values”.Fourth part: summarized the research conclusion this paper, put forward to the research prospects and taken the preparedness and response.