Research On Product Market Competition,Corporate Internal Governance And Recovery Of Financial Distress

With the flourishing development of securities market,more and more listed companies with abnormal financial condition have been got special treatments by the stock exchanges.Most scholars regard implementation of special treatment by the stock exchange as a symbol of listed companies falling into financial distress.They regard it as the standard of recovery from financial distress that those get cancellation of special treatment by the stock exchange in two years.People come to realize that the financial distress problem is the trouble that every listed company may encounter.And more and more scholars are also paying attention to the study of financial distress issues and find that the improvement of corporate internal governance is conducive to the recovery of financial distress of listed companies.Different levels of product market competition will substitute or complement the recovery of financial distress by corporate internal governance.Therefore,from the perspective of corporate internal governance,this thesis explores what kind of corporate internal governance structure contributes to the recovery of financial distress of listed companies.Different levels of product market competition and what kind of corporate internal governance will be more beneficial for listed companies to achieve the recovery of financial distress as soon as possible.Based on the literature review and theoretical analysis,this thesis studies the equity structure,board governance and executive incentives in the company's internal governance structure,and introduces the product market competition variable.A total of 12 research hypotheses have been put forward.The research sample is listed companies from 2010 to 2017 which is in financial distress situation.The thesis selected relevant explanatory variables,explanatory variables,adjustment variables and control variables according to the research hypotheses,using logistic regression model of corporate internal governance variables on recovery of financial distress.The empirical logistic regression shows that: State-owned shares,the concentration of shares,the proportion of independent directors,executive compensation are positively correlated with the recovery of financial distress.Board size,duality of chairman and general manage are negatively correlated with the recovery of financial distress;product market competition will substitute or complement the effect of corporate internal governance on the recovery of financial distress.Finally,the thesis will provide targeted and practical policy reference recommendations based on empirical results and hope make a little contribution to getting out of trouble for a financial distress company.