Study On The Impact Of Ownership Structure To Getting Rid Of Financial Distress In Our Country

With the rapid development of the capital market in China from the 1990 s,A substantial number of listed companies appear and wait in line every year,at the same time,the listed companies grow in quantity and scale,their management mode standardized gradually,their organizational structure and operation getting better.The companies create performance,absorb employment,add tax and have become mainstay of economic growth in China.However,due to poor management and other reasons many listed companies fall into financial distress,labeled “ST”,their operating performance decline sharply,the public lost confidence of it,the investors and creditors would suffer from it,affecting the normal operation of the capital market.So the allocation of social resources cannot reasonable maximized.In recent years a large number of domestic and foreign studies on the relationship of ownership structure ? corporate governance structure and financial distress emerged.However the study is operating in a normal state.The research of the relationship between ownership structure and corporate performance in financial distress is few.The current Chinese scholars focused on financial distress cost measurement,the early warning model and other aspects in this field.In summary,It is necessary to study which kind of ownership structure could make positive effects in the recovery of financial distress.In this paper we choose special treatment(ST)companies due to the abnormal financial condition as the symbol of companies that fall into financial distress.We choose the domestic A-share listed companies in financial trouble as the research object.After independent-sample T test and multicollinearity test,the indicators establish logistics regression model.The test of goodness of fit indicate that the model has a good fit.Finally,we use the method of multiple linear regression analysis.The empirical analysis conclusion is that,the ownership concentration,ownership balancing degree and percentage of outstanding shares have positive effect on the companies' recovery of financial difficulties,while the state-owned shares has a negative effect on the companies' recovery.The article examines the ownership structure how to affect the in financial difficulties companies' out of trouble.The paper improve the theory of ST companies' recovery and provide constructive advice to the financial difficulties company.Facing current situation,drawing on other countries or regions theory,the study provide a new way of thinking of the follow-up relevant aspects,establishing a more effective,more long-term analysis mode,and offer policy recommendations and rationality countermeasures.In conclusion,in this paper,we want to inspire and prompt the company to establish a reasonable and appropriate ownership structure and governance structure that get rid of financial distress as soon as possible.