Empirical Study On Influencing Factors Of External Measures Of Turning Loss About Loss Listed Companies

As our country’s economy has been influenced by the global financial crisis and the rate of economic development is getting slow,the phenomenon of listed companies’ deficit becomes overwhelmingly frequently.There respectively was 168,236,233,and 265 loss listed companies in 2011-2014.Many well-known enterprises and the market leaders also have started to decline and get losses in performance.For example,Jingdong Mall and Sohu made a loss of 5 billion Yuan and 1 billion Yuan respectively.If a listed company makes a loss continuously,it will be at risk of delisting.So,it is necessary for the loss company to turn loss.This makes the research of turning loss become an urgent and important issue.It is needed to study that loss companies will choose what kind of measures to turn loss,and which factors influence on different measures.The thesis expects to provide the empirical basis for the research of this field.The thesis uses the theoretical analysis and the empirical analysis.The theoretical part of this thesis introduces the external measures and internal measures of turning loss.When a company makes a loss,the company will use the external measures of turning loss except the internal measures because of Soft Budget Constraint theory.For example,disposal of non-liquid assets,debt restructuring,and government subsidy are common external measures of turning loss.Considering that the factors influence on disposal of non-liquid assets are uncertain due to flexible objects of disposal of non-liquid assets.So the empirical part of this thesis analyzes the factors influence on debt restructuring and government subsidy.The research sample is 456 listed companies turning loss in 2012-2014.The thesis adopts the method of the binomial Logistic regression and multivariate linear regression.The empirical results suggest that: 1)listed companies turning loss use at least one kind of internal measures to turn loss,and in the external measures of turning loss,disposal of non-liquid assets is used most frequently,followed by government subsidy and debt restructuring;2)operating liabilities is positively related to debt restructuring,this positive correlation is more intense,and political connection has a positive adjustment function between operating liabilities and debt restructuring for state-owned listed companies;3)political connection helps the listed companies receive government subsidy,it is positively related to government subsidy,and the local government’s financial situation has a positive adjustment function between political connection and government subsidy for non-state-owned listed companies.According to the results of analysis,some suggestions are presented.The loss listed companies should use the commercial credit that has little cost actively,as supplement of operating liabilities.China should further strengthen and perfect internal and external mechanism of corporate governance,bankruptcy and related law system,the governance mode of creditor’s rights belong to the bank,etc.For the loss listed companies that use debt restructuring and government subsidy to turn loss,creditors and government should consider whether they have actual strength to turn loss in the future.The government needs to introduce some laws and regulations when necessary.