The Research On Influencing Factors Of Listed Enterprise Recovering From Financial Distress

The fact that you can never deny is that the Gross Domestic Product(GDP) in China has already drop 4 years by 7.9%、7.78%、7.76%、7.4% when you include 2012 whose GDP drop 8% firstly. Besides, the Consumer Price Index(CPI) and Producer Price Index(PPI) have drop to 2% on year-on-year basis, the Purchase Management Index(PMI) declined below 50 these 2 months. So there is a voice louder and louder that we have already faced the deflation.Facing this difficult situation, it’s time to reform in economic structure. As a important part and the promoting machine, enterprise lies in important place in the economy promoting, incrising jobs position, maintaining the society. Due to this reason, our leader show the direction during the third plenary session of 18—reform the enterprise, so as to rebuild the vitality of enterprise, and promote Chinese economy.Besides in capital market, all of the stock rise sharply with the lead of Citic Securities in July.2014 which attract hot money in and out, and this supply situation in capital level for reform state-owned enterprise. All these illustrate that the reforming of enterprise will be one of work point in the future, so studying Chinese enterprise, especially lack vitality becomes essential.After reading and sorting out the literature, I define the definition and function of financial distress emergence, and then I review the research output of financial distress emergence from scholar all over the world. In the study, I choose 51 Chinese special-traded(ST) enterprises which get away from financial distress, and then choose the financial data that 2 year before breakaway special-traded, besides I choose other 51 special-traded enterprises as control group which is still in special-traded. As for the index system, I choose 49 index ranging from 7 directors: profit, development, operating, cash flow capacity, debt paying ability, lever, and Non-financial indicators. With the hand of SPSS, I test thether the data belongs to T normal first, then test the differences by Wilcoxon signed rank test, then I reject the inappropriate data, so to build up a preliminary data system; then through factorial analysis, I establish a Logistic regression model for all index.At the last of zhe article, I draw 4 conclusions: First, if the special-traded(ST) enterprises want to get away from financial distress emergence, the enterprise need to focus on long-term profitability, short-term solvency, long-term solvency, cash flow; second this article shows 4 solution to reform from the management point of view; third point out the limitation of this article, and show the way to use the model, so as to let the readers use it easily and let the special-traded(ST) enterprises get away from financial distress emergence as soon as posibile.