Research On The Path And Effect Of Financial Distress Of Listed Companies In China's Iron And Steel Industry

As an important force to promote China's economic development,listed companies have a very important impact on enhancing market liquidity,optimizing economic structure and promoting regional economic growth.However,with the slowdown in China's economic growth in recent years,many listed companies began to appear business problems,profits decline,only in 2020 there are 159 A-share listed companies due to poor management and facing delisting crisis.The iron and steel industry is a pillar industry in China,but the current complex domestic and international situation has caused great impact on the iron and steel industry.The decline of market demand,high cost,low steel price and environmental policy constraints have adverse effects on the sustainable and stable development of the iron and steel industry.This paper uses literature analysis and case study to sort out and summarize the literature on financial distress at home and abroad,and defines the concept of financial distress.After analyzing the characteristics of China's iron and steel industry,the development status and the plight of listed companies,Bayi Iron and Steel is selected as the research object.The financial index method and non-financial index method are used to analyze the plight,the process and performance of Bayi Iron and Steel.It is found that Bayi Iron and Steel's plight is the result of internal and external effects,which has the influence of fierce competition in the industry and the decline in market demand.There are also reasons for unreasonable product structure,weak profitability and poor cost control.In order to get rid of the difficulties and take off the hat,Bayi Iron and Steel actively caters to the development trend of the market,and comprehensively selects the way to get rid of the difficulties : on the one hand,through the use of government subsidies,the transfer of loss-making subsidiaries and debt restructuring,effectively alleviate the debt burden and capital pressure of enterprises;on the other hand,Bayi Iron and Steel through asset replacement to achieve business integration,reduce costs,while increasing R & D investment,the development of new products,broaden sales channels,expand the sales market,the development of source savings,so as to achieve financial difficulties for the long-term development of enterprises to provide protection.It is concluded that the comprehensive selection of suitable ways to get rid of difficulties is more conducive to the listed companies in financial difficulties to get out of the predicament,and strengthening technological innovation and product research and development is an important measure to ensure the long-term development of enterprises.According to the case content,it is proposed that Bayi Iron and Steel Company should strengthen the solvency and optimize the capital structure.At the same time,iron and steel enterprises should pay attention to cost control,strengthen technological innovation,realize the upgrading of production technology,and improve the core competitiveness of enterprises in market competition.