Research On The Countermeasures And Effects Of Financial Distress Before And After State-owned Enterprise Bankruptcy Reorganization

With the acceleration of the transformation of the market economy in China,the problems of inefficient operation and weak market competitiveness of state-owned enterprises have gradually become apparent,and financial distress in state-owned enterprises has also become common.How to help state-owned enterprises get rid of and get away from financial distress has become an important issue for deepening the reform of state-owned enterprises.The research on the financial distress in the theoretical world is changing with each passing day,but the research on how to deal with the financial distress of state-owned enterprises still needs to be supplemented.The purpose of this thesis is to explore effective measures for state-owned enterprises to get rid of financial distress.and to add research to financial distress.This thesis selects Chongqing Iron & Steel among the top ten typical bankruptcy cases issued by the Supreme People's Court in 2018 for case study,which has certain timeliness and typicality.Taking bankruptcy and reorganization as an entry point,this thesis conducts an in-depth analysis on causes,countermeasures and effects of Chongqing Iron and Steel's financial distress,and pays attention to the impact of government intervention.Specifically,the analysis of causes comb from outside to inside;the analysis of countermeasures focus on vertical comparison of countermeasures respectively used before and after bankruptcy reorganization;the analysis of the effects focuses on the comprehensive evaluation from multiple perspectives of market response,accounting index and stakeholders.Meanwhile,the industry average is added as a horizontal comparison,and also the Event Study is introduced to improve the accuracy of the conclusion.The research found that the financial distress of state-owned enterprises are often caused by internal and external reasons;the ownership structure of state-owned enterprises is related to the choice of countermeasures;and market-oriented systemic countermeasures are costly but effective.In addition,bankruptcy reorganization is conducive to eliminating the problem of " one share dominates " in state-owned enterprises and promoting China's mixed ownership reform.According to the research findings,this thesis puts forward corresponding suggestions from the perspective of government and enterprises.The research in this thesis theoretically enriches the research about the relationship between state-owned enterprises' financial distress and government intervention,state-owned enterprises' financial distress and bankruptcy reorganization,countermeasures of state-owned enterprises' financial distress.In practice,it sorts out the successful experience and failure lessons of the state-owned enterprises in dealing with financial distress,which has certain practical significance.