The Study, Based On Continuing Operations In Conditions Of Uncertainty

In this paper, continuing operations under the conditions of uncertainty were studied. Increasingly complex economic environment has made uncertainties more obvious, and also made the operation of company challenging, the company's continuing operations have been called into question. The question is more serious because many companies go bankrupt after the most recent economic crisis. The current study of the uncertainty is blocked by the measurement and the technical processing of the uncertainty. The study of the response is limited in macro-analysis, and there is not much research in micro aspects. As to the study of operation under the uncertainty, it also does not appear. Based on the fact that the prevention mechanisms of the contemporary company can not effectively hedge the risk of the uncertainty, as well as the absence of such research, this paper chooses the topics.Empirical method is used in this paper. Through the analysis of the data of companies, the paper found the law and a breakthrough to cope with uncertainty to deal with the problem that capacity of the company continue to operate under the conditions of uncertainty is insufficient. At the beginning of this article, a series of theoretical analysis was made, including the analysis of uncertainty and continuing operations, and identifying the line of the study and building the logical framework, and also including the classifying and concluding of the relevant literature. Then the paper do the empirical study conducted in two parts and concluded that. First, the paper made an empirical analysis on the cash holdings on three levels of the whole companies from the stock market, the whole industry and company case, and got the result that the lower cash holdings will result that company can not going. Then, the paper made an empirical analysis on the bad debt provision on two aspects including quality of accounts receivable and coverage of bad debt provision, and got the conclusion that most companies have the common problem of inadequate provision for bad debts. In addition, corporate governance and internal control is also studied. Finally, according to earlier findings of the study, some countermeasures were put forward to enhance the capabilities for the continuing operations of the company under the uncertainty.