The Study On The Factors Influencing Financial Distress Costs In Chinese Listed Companies

As the problem of financial distress is an important and complicated company's financial affairs research field, financial distress cost is a quite disputed concept and proposition. The complexity of problem of the financial distress cost lies in tow respect:First, financial experts understanding to financial predicament and company achievement relation is different, i.e. the problem that the financial distress cost exists or not and what is the financial distress cost; Second, on the premise of admitting the financial distress cost exists, how to measure the financial distress cost accurately?This paper analyses financial distress costs in the view of the stockholder's theory, based on which to study its influencing factors, and the financial distress costs are divided into generalized costs and narrow-sensed costs. The generalized financial distress costs are referred to the sum of stakeholders' costs caused by the enterprise during the financial distress period. The generalized financial distress costs may be classified into four subcategories:real costs borne directly by the enterprise, real costs borne directly by the shareholders, real costs borne directly by the creditor and real costs borne by other parties. The narrow-sensed costs are just referred to the sum of enterprise's costs caused by itself during the financial distress period. It includes just tow content:the direct cost and the indirect cost.This paper takes listed companies as the research object, chooses special treatment (ST) company because of the abnormal financial condition as the symbol that the enterprise falls into financial distress. Using equity value view in this paper discovers that the shareholders really bear some financial distress costs. using operating achievement view discovers that the financial distress makes listed companies not only pay costs but also get the welfare effect. In this foundation, the paper analyzes influencing factors of the financial distress costs on four aspects:the corporate government, corporate characteristic external environment and the length of related time. Embarking from the above research conclusions this paper gives some advice that establishing the prediction system of financial distress, and perfecting the mechanism of corporate government and the corresponding laws system policy, in order to provide the policy-making reference for distressed companies to get rid of the financial distress or reduce the financial distress costs, promote the sound development of the listed company, and realize the rational distribution of social resources.