Abstract:
Because of China's rapid economic expansion and the globalization of the global
economic environment,, enterprises in many industries in China, no matter how
big or small, are facing fierce market competition, complex market environment
and huge development pressure. Between 2010 and 2018, 642 Chinese listed
companies were in financial distress, feared delisting or going bankrupt, and
were given special protection. Therefore, if we can identify the factors that affect
the financial distress of China's manufacturing industry, we can predict in
advance whether the company will face financial distress or bankruptcy.This can
assist investors in making better investment decisions and avoiding failing
businesses.As well as creditors to assess the future state of the company to avoid
further losses. This work is very important both theoretically and practically.
Combined with the research status of financial distress of Chinese manufacturing
companies, This article is to study the factors and analysis that affect the
financial distress (operating net profit rate) of my country's manufacturing
industry, mainly from Earnings per share EPS (deducted) (RMB), Return on
Equity ROE (%), Return on total assets ROA as dependent variables , randomly
select the annual financial statements of 5 ST listed manufacturing companies
and 25 non-ST listed manufacturing companies from 2019 to 2021 as financial
distress samples, and use 3 financial indicators for research and analysis of
explanatory variables. According to the analysis results, the researchers found
that Return on Equity ROE (%) and Return on total assets ROA had a positive
impact on the operating net profit margin. But Earnings per share EPS (deducted)
(RMB) will not have a positive impact on operating net profit margin.The article
concludes with a conclusion, puts forward the impact of the policy, puts forward
some suggestions for financial distress, and puts forward research deficiencies
and suggestions for future research prospects
