The Solutions And "Cancel ST" Of ST Companies' Financial Dilemma From The Perspective Of Region And Industry

In the new era,China's economy has shifted from a high-speed growth stage to a high-quality development stage,and it is now in the period of changing the development mode,optimizing the economic structure,and transforming the growth momentum.As an important part of the securities market,the ST segment also deserves attention for its current operating status and financial quality.With the increasing number of ST companies,more and more ST companies have violated the law on the road to seek removal from caps.Therefore,it is very important for ST companies to solve their difficulties.Taking equity transfer as an example,most ST companies change their operating performance through equity transfer and have greater expectations.After the new controlling shareholder enters the company,it can bring new business ideas to ST,or change the company's operating status by injecting quality assets to ST company and at the same time divesting the company's non-performing assets,but the solution to the problem of equity transfer Is it applicable to ST companies in all regions and industries?This article begins with a literature review of the four parts of the ST system,financial distress,ways to solve difficulties,ways to solve difficulties,and regional and industry relations,defines the concept of ST system and financial distress,and outlines the theoretical basis of financial distress.Then we analyze the status quo of China's ST companies and sort out the ways to solve the difficulties of ST companies mainly include financing,equity transfer,asset replacement,asset acquisition and government subsidies.In the empirical research part,this paper takes 230 ST companies in China's A-share market from 2003 to 2017 as research samples,and adopts multiple Logit models and Logit models respectively to empirically test regional and industrial differences and extracting cap differences of the company's rescue methods..The empirical results show that there are significant regional and industry differences in the way of solving the difficulties of ST companies,and different ways of solving difficulties will have different probability of removing caps,that is,ST companies in different regions and industries should adopt different ways to solve difficulties..The results of the study indicate that:ST companies in the eastern coastal areas,the northeastern region,and the central region have adopted more methods to solve the problem of equity transfer.ST companies that receive government subsidies mostly belong to the western region;the real estate industry tends to finance;from the results of decap,the eastern coastal areas and the central region The probability of picking hats for financing in regions and western regions is greater than other methods of solving difficulties;ST companies in the real estate industry do not perform well in removing caps from equity transfers.Therefore,it is recommended that ST company decide the solution to the difficulties due to the region and industry,and should pay attention to the long-term benefits of the company in order to achieve the real extraction of caps;the regulatory authorities should strictly control the illegal activities in the process of resolving the difficulties and prevent ST companies from committing crimes;investors should pay attention to ST companies.The dynamics of solving difficulties,controlling risks and refusing speculation.This article explores the solution to the financial distress of ST companies from the perspective of regions and industries,and examines whether different solutions to the difficulties will cause differences in ST companies' caps,thereby providing reference for ST companies in different regions and industries.There is greater practical value.