Research On Executive Characteristics And Corporate Financial Distress Recovery

From 1930 s to 80 s,financial distress researches in western countries pay much attention on the enterprise's distress prediction and the cost measurement.Until 1980 s,these researches are starting to investigate the factors that affect the recovery of financial distress.Most of the present researches,which focuses on the distress prediction and related affecting factors,is not enough to keep enterprises in financial distress out of troubles.This is a pressing issue.The excellent executive team,one of the most valuable resource or strategic resource,has important implications for establishing competitive advantages and improving enterprise's operating capacity.Corporate finance,governance and restructurings are mostly discussed in available documents concerning financial distress recovery.Seldom efforts discuss the financial distress from the top management team characteristics.Therefore,in this dissertation,we reveal the relationship between the top management team characteristics and financial distress from this aspect.In recent studies of micro enterprises behavior,the macro policies and micro enterprise behavior was always separated.It can not effectively reflect the relationship between macro policies and micro-enterprise.Loose monetary policy can reduce financing costs,thereby reducing the likelihood of financial distress,but also help the company executives to lead the company out of distress.Based on upper Echelons Theory and Agency theory,regular and empirical researches are conducted to raise some questions.By exploring these issues,we investigate the association between the management team characteristics and the recovery of financial distress.This dissertation is divided into five parts,the research contents are:1.Introduction section begins with the current social situation and introduces the research background,significance and necessity to highlight the research merits,meanings,ideas,methods and framework.2.This part concerns theoretical basis and literature review.According to the analysis in previous section,this section summarizes the related documents and research results to establish the theory involving the origin of enterprise's in financial distress and develops this theory to provide theoretical basis for empirical analysis.3.Research about the relationship between management team characteristics and recover of financial distress.This section mainly provides the theoretical basis and research ideas for following empirical analysis and is divides into two parts.The first part defines the intrinsic logic between the management team characteristics and the recovery of enterprise's financial distress.The hypothesis of empirical research is set up by theoretical analysis.The second part designs the empirical research in details,including the explanations of the research samples and hypothesis,and the definitions of dependent variable,independent variable.4.The section provides empirical analysis.Based on the research hypothesis in previous section,the empirical sample analysis is conducted to discuss which management team characteristics will bring a positive effect to recover the financial distress.In this section,monetary policy also act as a variable to grouping all the samples.How monetary policy affect the management team characteristics and resultant recover of the financial distress is also discussed.5.Research limitation and policy suggestions section.Based on the theoretical and empirical researches,this section summarizes research limitations and deficiencies,and accordingly gives some suggestions with respect to research results.The conclusions of this dissertation are summarized as follows:1.The order managers is bad for keeping enterprise out of financial distress,and the tight monetary policy is more conducive to a young executive to lead the company out of the distress.2.It is easier for management team with higher diploma to keep the enterprise out of the negative situations,loose monetary policy is more conducive to highly educated executives to lead the company out of the distress;3.The percentage of women in the management team shows some connections with the recovery of financial distress.But these connections are weak.Similarly,no matter under what monetary policy conditions,it has no relationship between the proportion of women in executive team and the recovery of financial distress.4.It is easier for enterprise operated by manager team with higher level skills to get rid of financial distress,and loose monetary policy is more conducive to highly skilled executives to lead the company out of the distress.This dissertation have two innovations:1.The paper leads executives features into financial distress recovery studies,expanding the research of financial distress,and enriched the theory of financial distress.2.The studies have investigated the relationship between macroeconomic policies and financial distress recovery.It will supplement new evidence.for this research of "Macroeconomic policy and micro enterprise behavior."...