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The Nature Of Ultimate Controller、External Environment And Financial Distress

Posted on:2017-02-20Degree:MasterType:Thesis
Country:ChinaCandidate:Y L CaoFull Text:PDF
GTID:2309330485969215Subject:Accounting
Abstract/Summary:PDF Full Text Request
The current domestic and foreign research related to financial distress is largely based on the financial indicators of listed companies to build the financial early-warning model, these studies predict the efficiency of the listed companies in financial distress and distinguish accuracy mainly through specific financial indicators. The current studies of factors affecting the company’s financial difficulties is less. In the existing literature, the definition of state owned enterprises and non state owned enterprises is mainly determined by the state-owned shares disclosed by the listing Corporation. The legal person shares of China’s listing Corporation, there is a part of the state-owned legal person shares, but this part of the data is not disclosed. If only from the database according to the state-owned shares to determine the nature of the enterprise, may have a certain impact on the results of the study. After La port putting forward the concept of ultimate controller for the first time in 1999, academic studies on characteristics of ultimate controller keep increasing, and become the mainstream of the corporate governance. Disequilibrium theory is that external shocks cause listed companies falling in financial distress. In recent years, some scholars have began investigating the external governance environment, which effect on the company’s financial distress. Therefore, this article examines two aspects impacting on companies in financial distress, which are property rights and company’s external governance environment.Based on the above analysis, this article takes 4926 listed companies issued by A shares of Shanghai and Shenzhen between 2012 and 2014 as research samples. Drawing the classification of Xia Lijun, Fang Zhiqiang(2005), obtaining data via CSMAR database and the network of Cninfo, the ultimate controller by nature is divided into four categories. Employing the China marketization index- a regional market relative process report in 2011 compiled by Fan Gang, this article obtains relevant data of external governance environment variables. By using Excel2010, SPSS21.0 software, the article carries on the empirical analysis, researching on the nature ultimate control person properties, external governance environment impact on the financial distress.The empirical results show that: firstly, the nature of the ultimate controller of listed corporations has a significant impact on financial distress. Specifically, in the other conditions remaining unchanged, compared with the listed companies controlled by non-government, listed companies controlled by high-level government are not easy to fall into financial distress; listed companies controlled by low-level government are more likely to fall into financial distress; in the other conditions remaining unchanged, in the listed companies controlled by government, compared to the listed companies controlled by low-level government, listed companies controlled by high-level government are not easy to fall into financial distress. Secondly, the improvement of the listed company governance environment, can reduce the probability of listed companies in financial distress. Finally, in the case of other conditions remaining unchanged, relative to the listed companies controlled by non-government, corporate governance environment can inhibit the listed company controlled by government falling in financial distress.This paper examines two aspects, the nature of the ultimate controller and the external environment of the company, on the influence of the financial distress. The research angle of this paper is novel, not only can enrich the existing literature, but also can provide empirical evidence for the in-depth study of financial distress.
Keywords/Search Tags:Ultimate Controller, External Governance Environment, Financial Distress
PDF Full Text Request
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