Research On Financial Distress Of NEE

China is in a critical period of economic transformation.The environment for enterprises to survive is changing all the time.In the fiercely competitive capital market,every year,a group of listed companies suffer from years of losses in performance,which affects the company’s ongoing operations and is retired by the CSRC.The special handling of the city warning,labeled as "ST",was caught in financial distress.However,the academic research on financial distress has long been stuck in the management perspective,and rarely involves the managers behind the implementation of these behaviors.In fact,in the process of running a business,managers are affected by many factors,and often there is a psychological bias of overconfidence,which further causes their decision-making mistakes,thus causing the company to fall into financial difficulties.This paper uses the case study method and the literature research method,taking the manager’s overconfidence as the research perspective,and taking Northeast Electric Development Co.,Ltd.(NEE)as the research object,trying to analyze the financial distress of the enterprise and explore the management of the company.The impact of overconfidence on business performance.Based on the relevant data and data of NEE Company from 2013 to2017,using the financial ratio analysis method,vertical and horizontal comparison techniques,etc.,the current situation of the financial distress of NEE in the past five years was analyzed.At the same time,according to the actual situation of the management,a variety of measures are used to judge the company’s management overconfidence.Through the two paths of investment decision-making and financing decision-making under the influence of managerial overconfidence,this paper studies the causes of financial stagger of NEE Company and proposes targeted countermeasures.Through the previous research we can draw the conclusion that the managers of NEE do have overconfidence,and this psychological bias translates into over-investment and financial risks in investment and raising decisions,making NEE more vulnerable to financial difficulties.In response to the situation that NEE is eager to get out of trouble and the development of the power transmission and transformation industry,it proposes a response strategy for asset restructuring as soon as possible.At the same time,it proposes to constrain the psychological deviation of the company’s managers personally and keep investing.Rationality in financing decisions.This paper provides a certain reference for the prevention and response of financial difficulties to NEE and other enterprises while enriching the case research results of the cross-sectoral aspects of corporate financial distress and managerial overconfidence.