Research On Identification And Countermeasures Of Enterprise Financial Distress

Since the first event of credit default about Shanghai Chaori Bond in 2014,domestic bond market has broken the inherent image of rigid redemption,and bond default has gradually normalized.From 2018 to 2019,it set off a wave of bond default in private enterprises.But in the second half of 2020,affected by COVID-19,intensive bond default occurred in the state-owned enterprises,which caused a significant negatively impact on the bond market.As one of the main manifestations of financial distress,bond default can be solved by resolving the enterprise financial distress.Therefore,how to resolve the enterprise financial distress,help it get through the difficulties and become bigger and stronger in the development has become an urgent problem to be coped with.In order to accurately and comprehensively identify the specific manifestations of enterprise financial distress and put forward specific and effective countermeasures for reference,the thesis uses the case study method,takes HC Group as the research object,and studies the identification and countermeasures of enterprise financial crisis with the background of its bond default.First of all,the author systematically sorts the literature on identification and countermeasures of financial distress from both domestic and foreign scholars,and constructs the analytical framework of financial distress based on Harvard analysis framework.Second,taking bond default in HC Group as the research background,the thesis identifies the specific manifestations of financial distress in there,specifically including false in strategic decision-making and deviations in implementation,violations of information disclosure,poor financial situation,and uncertainty in industry transformation.In terms of strategy,the group’s strategic orientation has deviated from technology to market and it exists in functional strategic decision-making errors.In the aspect of accounting,the group’s part profit is padding,and information disclosure is false and untimely.In terms of finance,the group’s independent brands only have weak profitability.It operates with excessive debt and cash flow shortage.In the aspect of industry,it faces the uncertainty of industry transformation.Finally,according to the specific manifestations mentioned in the above,the countermeasures of financial distress are put forward.In response to the strategic perspective,it is proposed to implement a technology-oriented group strategy and rationally develop functional strategies.To deal with the information disclosure violations in financial distress,it is suggested to improve corporate governance by rationally standardizing internal control of data presentation,implementing the duties of independent directors and strengthening the supervisory function of the board of supervisors.For the struggling financial situation,to strengthen independent brand building,avoid excessive debt operations,and to improve cash flow management can be adopted.As for the uncertainty of industry transformation,accelerating the pace of transformation and upgrading is a great way.The innovation of the thesis is mainly reflected in the two aspects.On the one hand,the research case is timely and representative.Through the comprehensive study of the financial crisis in HC group,it can provide some reference for other companies with similar situations to deal with the financial distress.When the enterprise identifies the financial crisis factors in strategy,accounting,finance and prospect,it can rationally formulate and effectively implement group strategies,perfect corporate governance to avoid illegal information disclosure,improve financial situation and accelerate transformation and upgrading to handle it.On the other hand,guided by the analytical framework of financial distress constructed by Harvard analytical framework,the thesis comprehensively identifies the specific manifestations of financial distress in HC Group and puts forward countermeasures,comprehensively considers financial and non-financial information,and further enriches the theoretical research of financial distress.