Study Of Corporate Financial Distress Costs

The problem of financial distress is an important and complicated company's financial affairs research field. And the financial distress cost is a quite disputed concept and proposition. The complexity of the problem of the financial distress cost lies in two respects: 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; Second, on the premise of admitting the financial distress cost exists, how to measure the financial distress cost accurately?Usually we thought the financial distress cost consists of the direct cost and the indirect cost, the direct cost is the bankrupt cost, mainly is composed by kinds of bankruptcy cost of liquidation; The indirect cost, the financial distress damage the synthesizes economic efficiency to the enterprises. At present the people often pay attention to the harm of bankrupt cost to the enterprise, and neglected the financial distress indirect cost inspection and the measurement before bankrupt, people has never realized, because the financial distress indirect cost finally caused the bankrupt cost occurrence. Therefore, we have the necessity to strengthen real-time survey, control and early warn to the enterprise finance distress cost.However, at present the financial distress indirect cost gauging device, actually has the inspection surface narrowly, the target has been unitary, and the financial norm selection random and so on. These flaws have affected the enterprise finance distress cost measurement accuracy. At first this article expound the financial distress cost, and analyzed the financial distress cost constitution and the form mechanism, opened up the financial distress cost connotation; And appraised the existing kinds of financial distress cost gauging device. In view of manages the boundary change model target to be unitary, the inspection surface narrow limitation, we has expanded the ability of paid off debt, the property business capacity, the development ability and so on the multi-groups financial norm, constructed the difficult distress enterprise multipositions financial distress cost inspection measurement system. At the same time, we changed efficiency model target for the enhancement to be possible the confirmation, the paper utilization principal components analysis method, selected the difficult distress cost target system the constitution target, and has inferred the different financial difficult position cost target weight value, improved the original management boundary to the difficult distress cost target selection random. This article hoped can level strengthen to difficult position manager to the financial difficult distress indirect cost real-time surveys, control and the early warn provided the reality instruction, and give the financial distress indirect cost confirmation, the measurement, financial distress cost target question and so on provides the certain reference value.