A Empirical Study Of Restructuring Strategies Of The Chinese Listed Companies In Financial Distress

In recent years, because economic globalization trend is more obvious, the economic environment is more complex, the risk and uncertainty the companies face is increasing, more and more companies go into financial crisis. If the company tripped in financial crisis can not take the right measures to solve the problem, the company will lead to bankruptcy eventually. In recently period the bankruptcy showed a trend of globalization, its performance is the amount is larger and the aspects it involved in is broader, so the analysis of the financial crisis measures is particularly urgent and vulnerable. From the current measures the Bankrupt enterprise taken, the majority of companies have chosen strategy of restructuring, but whether the strategy of restructuring will success is not certain. what kinds of restructuring strategies can play the most important role and the reasons of it’s effectiveness in helping the company go out of trouble is what we should focus on. In this paper, based on previous studies, we research the restructuring strategies of financial crisis once again.In this article we selected 2005-2011 first ST companies in A-share listed as samples, we use the condition of picking a hat after two years as standards to divided the companies into removable cap and don’t pick the cap samples. Whether the ST companies removable cap or don’t pick the cap is as explained variables. We use the strength of restructuring strategies within two years after the company is announced ST as explanatory variables, to build the company with financial crisis’s restructuring strategies model for empirical research. The results show that mergers and acquisitions and asset replacement is good for the ST company to go out of the crisis. On this basis, we analyze the factors influenced the two strategies of making a function in getting rid of crisis, and we explore the condition when the two strategies can be effective. Providing a reasonable measures for the company who wants to get rid of financial crisis.