Research On The Financial Distress Of State Owned Enterprises

The number of state-owned enterprises in China is relatively large,which is an important part of China's economic development.Most of the areas involved are pillar industries.However,in recent years,the process of globalization has been accelerating and the transformation of product market is becoming more and more complex,which makes some state-owned enterprises in our country difficult to adapt to the increasingly complex market operation environment,and have produced a lot of serious insolvency losses.With the intensification of competition among enterprises,enterprises are facing more serious business and financial risks.In such an external environment,more and more,more and more.Many state-owned enterprises are hard to maintain steady development and get into financial difficulties.Because of the huge difference in capital structure and management mode between state-owned enterprises and private enterprises,the causes of the financial difficulties of state-owned enterprises and their solutions are also different.Therefore,the research on financial distress of state-owned enterprises has become the focus of attention in theoretical circles.As the first state-owned enterprise in China,which has been specially treated for two years of huge losses,the operation mode and financial situation of COSCO are typical of the characteristics and defects of the state-owned enterprises.In view of the above,this paper selected the Chinese shipping giant,China COSCO Holdings Ltd as the target case enterprise,and analyzed the huge loss of the China COSCO Holdings Ltd from 2011 to 2013 from the financial point of view.The case is divided into three parts.The first part is the first part of the analysis of the basic situation of the financial plight of COSCO.The second part,according to the related financial statements of COSCO from 2007 to the 2016,and the related financial indicators from four aspects of the solvency,profitability,profit,and development ability to describe and study the financial situation of the enterprise.Then from two angles of the market environment and the internal control of enterprises,we can find out the reason that COSCO falls into financial difficulties and face financial risks.The third part,based on the analysis of COSCO financial situation and the above reasons,puts forward some suggestions for scientific and effective and effective.Finally,through the analysis and summary of the whole article,we find the state-owned enterprises to avoid financial difficulties.Ways of environment and effective ways to solve financial difficulties.