A Case Study On The Development Process Of Financial Crisis Of~*ST ChaoRi

Financial distress,known as financial crisis.Corporate financial distress are made from gradual deterioration of the financial normal,which may eventually lead to bankruptcy.With the advance of globalization,increasing competition among enterprises,the financial and operational risks will increase the probability of financial distress,financial distress has become the focus of attention both in theory and practice.In the past decade,China’s PV industry has achieved rapid development.However,China’s PV industry is in a "two out" model of development,such a development model allows Chinese PV corporate lack the ability to resist risks.Affected by the financial crisis,the overseas PV market is shrinking,which caused a huge impact on Chinese PV corporate.Today,the PV industry is facing the large area collapse,the development of PV industry has become the focus of attention in the theory of practice.This paper tend to think that the formation of corporate financial distress is a process.This paper selects Shanghai chaori Solar Technology Co.Ltd.(*ST ChaoRi)as the research object,based on the analysis of its internal and external environment,uses univariate and multivariate financial distress warning model to analyze its financial position,and constructs two factors-four stage model to summarize the causes and characteristics in the various stages of the formation of the company’s financial distress,and finally,provide recommendations for corporates to avoid financial distress.