Analysis Of The Causes Of ST's Huge Financial Distress And Research On Countermeasures

With the rise of the Internet industry and the transformation of residents'consumption concepts,some industries have been hit hard.Some of these companies are not in a timely manner,or are constrained by their own structure,and will fall into financial distress.The financial distress of listed companies not only cause economic losses to investors,creditors and stakeholders,but may also have an adverse impact on the healthy development of the market.This paper analyzes the whole process of the Pangda Group's financial distress before and after,and finds shortcomings and problems in financial decision-making and operation management.Combining the analysis of the cause of the financial distress in this case and the evaluation of the company's autonomy measures,it proposes comprehensive governance recommendations.First,measure the huge financial situation based on the F-score model and analyze the influencing factors of financial distress according to the specific performance.The analysis found the main influencing factors:(1)huge blind expansion(2)excessive debt(3)insufficient profitability(4)violation of information disclosure Penalized financing was interrupted.The superposition of multiple factors has led to a crisis of broken capital chains.Many attempts have been made in the governance dilemma,among which the more successful one is the means of debt restructuring,through debt restructuring to turn losses into profit.After the reorganization plan was completed at the end of 2019,the delisting risk warning was cancelled,and the dilemma governance achieved a staged victory,but it does not mean the end of "self-help".Combining Pangda Group's internal and external factors and governance process,the author puts forward comprehensive recommendations,mainly focusing on the following points:(1)strengthen fund safety management,control leverage ratio(2)enhance business core competitiveness,strengthen profitability(3)strengthen compliance Management(4)Diversified investments diversify risks.Form a cyclical change rule before,during,and after financial distress.There are six parts in this article.The first part mainly introduces the research background,relevant literature review,main research content and research methods of this article.The second part is related concepts and theoretical basis of this article.The third part is case introduction and cause analysis.The fourth part sorts out and analyzes the autonomy measures and effect evaluation of the financial distress.The fifth part is based on the above analysis of causes and dilemma governance,the author puts forward comprehensive governance suggestions.Finally,the sixth part reviews the analysis process before and after the financial crisis of the case company to draw enlightenment,and then draw conclusions,insufficient summaries and future prospects.The significance of writing this article:(1)Warning function,which warns enterprises to pay attention to potential risks,and can formulate effective preventive countermeasures in time to avoid or resolve financial distress.(2)Provide reference for investors,creditors and other economic stakeholders to evaluate the financial status of listed companies,and also provide reference materials for regulators to strengthen supervision and governance difficulties of trapped enterprises.