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公司财务困境预测：普拉特思考选择为基础的抽样偏差[外文翻译]

外文翻译Predicting Corporate Financial Distress：Reflections onChoice-Based Sample BiasMaterial Source：Engineering and Technology 2009 Author: Harlan D.Platt Assessing the financial strength of companies has traditionally been the domain of parties external to the firm,such as investors,creditors,auditors,government regulators,and other stakeholders.More recently,because competition has spawned intimate relationships between manufacturers and their component suppliers,now manufacturers are concerned about the financial health of their suppliers and vice versa.From a supply chain management perspective,if a manufacturer can help one of its suppliers ameliorate problems and thereby avoid bankruptcy,it is in both parties'interest to do so.Reliance on reactive distress signals such as delayed shipments,problems with product quality,warnings from the supplier's bank,or observations made during company visits to indicate near-term financial difficulties reduces the options and the time available to act and remedy the situation.An early warning system model that anticipates financial distress of supplier firms provides management of purchasing companies with a powerful tool to help identify and,it is hoped,rectify problems before they reach a crisis.Because of long-term contracts with selected and certified suppliers,large manufacturers are increasingly interested in the financial health of these suppliers in order to avoid disruption to their own production and distribution schedules.Financial distress is defined as a late stage of corporate decline that precedes more cataclysmic events such as bankruptcy or rmation that a firm is approaching distress can precipitate managerial actions to forestall problems before they occur,can invite a merger or takeover by a more solvent or better-managed enterprise,and can provide an early warning of possible future bankruptcy.While there is abundant literature describing prediction models of corporate bankruptcy,few research efforts have sought to predict corporate financial distress.The lack of work on financial distress results in part from difficulty in defining objectively the onset of financial distress.By contrast,the bankruptcy date is definitive and financial data prior to that date are reasonably accessible.As a consequence of the indeterminacy of when a firm becomes financially distressed,most research that purports to study financial distress instead examines the terminal date associated with the company's filing for bankruptcy protection.Our work examines financial distress in just a single industry,auto suppliers,because of a unique opportunity we had to work with the largest consulting firm working withthat industry.Regardless of the specific focus of an early warning system model,bankruptcy or financial distress,the sample design employed to build the model may result in biased estimated coefficients causing inaccurate predictions,at best.The sample design employed by many research studies has been to match a set of bankrupt firms with the same number or some multiple of healthy firms,often controlling for size or industry.For example,in his seminal study,Altman (1968)matched 33 failed companies with 33 healthy firms.Zmijewski(1984)argued persuasively that matching with anything less than the entire population of healthy firms when using logit regression or MDA would result in biased coefficients and unreliable predictions.This study builds a logit model to predict financial distress among companies in the automobile supplier industry(SIC 3714).Financial distress,rather than bankruptcy status,was the categorical dependent variable in the model.All publicly traded firms in the database,as recommended by Zmijewski(1984),as well as all financially distressed firms supplying one large Detroit-based automobile manufacturer were used to build the model.Simulations were then run to test the theoretical claim of bias advanced by Manski and Lerman(1977) and Palepu(1986) and Zmijewski(1984).A full range of statistical tests indicate that,with a full population,a reliable predictive model of financial distress correctly bifurcates 98 percent of all firms into those likely to experience financial distress in the subsequent year and those likely to remain healthy.Moreover,simulations showed that bias increased substantially when the sample design departed in steps from the original population of all firms in the automobile supplier industry,as expected.Prediction of bankruptcy occupies a long and accomplished history.Efforts to differentiate between failed and non-failed firms began with Beaver's(1966)early use of individual ratios, moved to the Altman's(1968)Z-score based on multiple discriminant analysis,and has currently witnessed recent innovations,most notably the use of industry-relative data(Platt&Platt 1991a); and neural networks(Altman,Marco,and Varetto 1994;Yang,Platt,and Piatt 1999).These models have proved beneficial in a variety of applications,including portfolio selection(Platt and Platt 1991b),credit evaluation(Airman and Haldeman 1995;Piatt and Platt1992),and turnaround management(Piatt and Platt 2000).Users of these models include creditors concerned with defaults,suppliers focused on repayment,and potential investors.Studies of corporate distress have mostly focused on the issue of financial restructurings (Gilson,John,and Lang 1990;Wruck 1990;Brown,James,and Mooradian 1992)and management turnover(Gilson 1989).There have been limited attempts to produce models that predict financial distress(Schipper 1977;Lau 1987;Hill et al.1996).Further,many studies that purportedly focus on financial distress,based on their title,in fact model bankruptcy status,based on their operational definition of financial distress(Frydman,Altman,and Kao 1985; Theodossiou,Kahya,and Philippatos 1996;Lin,Ko,and Blocher 1999).A roadblock limiting efforts to predict financial distress has been the lack of a consistent definition of when companies enter that stage of decline.Samples of firms that might be considered to be in distress have been created by examination of various markers:Lau(1987)and Hill et al.(1996)use layoffs, restructurings,or missed dividend payments;Asquith,Gertner,and Scharfstein(1994)allow an interest coverage ratio to define distress;similarly,Whitaker(1999)measures distress as the first year in which cash flow is less than current maturities of long-term debt;and John,Lang,and Netter(1992)let the change in equity price define distress.The problem with these indicators is that some companies engaging in those activities are not actually in yoffs may occur in specific divisions of otherwise healthy enterprises,restructurings may occur at different stages of decline,and there are many explanations for missed dividend payments.Perhaps these definitional difficulties contribute to the lack.ofsuccess of prior empirical efforts regarding financial distress.Another group of researchers,notably Donald Bibeault(1998)and Charles Hofer(1980), describe financial distress from a turnaround management perspective.Bibeault describes stages that depict companies moving from financial distress to recovery;in contrast,Hofer tracks healthy firms succumbing to financial distress.The centerpiece of his analysis is the concept of break-even or operating income.Like a variety of researchers,our work explores conditions within a single industry:auto suppliers.Guffey and Moore(1991)examined trucking;Platt,Platt,and Pedersen(1994) considered the oil and gas industry;Pantalone and Platt(1987)modeled failure of commercial banks;and Schipper(1977)predicted thefinancial condition of private colleges.Provided that a sufficiently large data set is obtained,single industry studies avoid issues arising in multi-industry studies such as differing accounting treatment of variables,cost,and capital structures as well as econometric concerns regarding data normality and stability over time.Another problem with many early warning prediction models is choice-based sample bias (Zmijewski 1984),which results when models are built using data sets that contain only a fraction of the target population of companies.Because bankruptcy transactions are relatively rare events, Zmijewski argues that unless one builds a model based on the entire population,the estimated coefficients will be biased,and the resulting predictions will over-estimate the proportion of bankrupt firms that are correctly classified as such.The remedy is to use a sample that is as close to the population as possible.While Zmijewski and others(Manski and Lerman 1977;Palepu 1986)clearly articulate the choice-based sample bias problem,Zmijewski's empirical test was weak.He compares results from the entire population of firms to those generated from several samples that were matched using varying numbers of healthy firms.For each sample size,Zmijewski reports the results of one regression and calculates the correlation coefficients between the percentage of bankrupt firms in the sample and the various estimated coefficients as well as the constant term.He finds significant correlations between the percentage of bankrupt firms in the sample and the estimated coefficient that are consistent with bias.Because he ran only one regression for each sample size,he could not test the individual estimated coefficients for bias against the population parameter,a more direct test of bias.By contrast,we use more standard tests of bias,comparing the mean estimated coefficient to the population parameter.译文公司财务困境预测：普拉特思考选择为基础的抽样偏差资料来源:工程与技术2009作者：哈兰普兰特评估公司的财务实力传统上一直是外界人士对公司的要求，如域名投资者，债权人，审计师，政府监管机构，以及其他债券持有者。

外文文献及中文翻译_财务风险的重要性How Important is Financial Risk_

How Important is Financial Risk?IntroductionThe financial crisis of 2008 has brought significant attention to the effects of financial leverage. There is no doubt that the high levels of debt financing by financial institutions and households significantly contributed to the crisis. Indeed, evidence indicates that excessive leverage orchestrated by major global banks (e.g., through the mortgage lending and collateralized debt obligations) and the so-called “shadow banking system” may be the underlying cau se of the recent economic and financial dislocation. Less obvious is the role of financial leverage among nonfinancial firms. To date, problems in the U.S. non-financial sector have been minor compared to the distress in the financial sector despite the seizing of capital markets during the crisis. For example, non-financial bankruptcies have been limited given that the economic decline is the largest since the great depression of the 1930s. In fact, bankruptcy filings of non-financial firms have occurred mostly in U.S. industries (e.g., automotive manufacturing, newspapers, and real estate) that faced fundamental economic pressures prior to the financial crisis. This surprising fact begs the question, “How important is financial risk for non-financial firms?” At the heart of this issue is the uncertainty about the determinants of total firm risk as well as components of firm risk.StudyRecent academic research in both asset pricing and corporate finance has rekindled an interest in analyzing equity price risk. A current strand of the asset pricing literature examines the finding of Campbell et al. (2001) that firm-specific (idiosyncratic) risk has tended to increase over the last 40 years. Other work suggests that idiosyncratic risk may be a priced risk factor (see Goyal and Santa-Clara, 2003, among others). Also related to these studies is work by Pástor and Veronesi (2003) showing how investor uncertainty about firm profitability is an important determinant of idiosyncratic risk and firm value. Other research has examined the role of equity volatility in bond pricing (e.g., Dichev, 1998, Campbell, Hilscher, and Szilagyi, 2008).However, much of the empirical work examining equity price risk takes the risk of assets as given or tries to explain the trend in idiosyncratic risk. In contrast, thispaper takes a different tack in the investigation of equity price risk. First, we seek to understand the determinants of equity price risk at the firm level by considering total risk as the product of risks inherent in the firms operations (i.e., economic or business risks) and risks associated with financing the firms operations (i.e., financial risks). Second, we attempt to assess the relative importance of economic and financial risks and the implications for financial policy.Early research by Modigliani and Miller (1958) suggests that financial policy may be largely irrelevant for firm value because investors can replicate many financial decisions by the firm at a low cost (i.e., via homemade leverage) and well-functioning capital markets should be able to distinguish between financial and economic distress. Nonetheless, financial policies, such as adding debt to the capital structure, can magnify the risk of equity. In contrast, recent research on corporate risk management suggests that firms may also be able to reduce risks and increase value with financial policies such as hedging with financial derivatives. However, this research is often motivated by substantial deadweight costs associated with financial distress or other market imperfections associated with financial leverage. Empirical research provides conflicting accounts of how costly financial distress can be for a typical publicly traded firm.We attempt to directly address the roles of economic and financial risk by examining determinants of total firm risk. In our analysis we utilize a large sample of non-financial firms in the United States. Our goal of identifying the most important determinants of equity price risk (volatility) relies on viewing financial policy as transforming asset volatility into equity volatility via financial leverage. Thus, throughout the paper, we consider financial leverage as the wedge between asset volatility and equity volatility. For example, in a static setting, debt provides financial leverage that magnifies operating cash flow volatility. Because financial policy is determined by owners (and managers), we are careful to examine the effects of firms’ asset and operating characteristics on financial policy. Specifically, we examine a variety of characteristics suggested by previous research and, as clearly as possible, distinguish between those associated with the operations of the company (i.e. factors determining economic risk) and those associated with financing the firm (i.e. factors determining financial risk). We then allow economic risk to be a determinant of financial policy in the structural framework of Leland and Toft (1996), or alternatively,in a reduced form model of financial leverage. An advantage of the structural model approach is that we are able to account for both the possibility of financial and operating implications of some factors (e.g., dividends), as well as the endogenous nature of the bankruptcy decision and financial policy in general.Our proxy for firm risk is the volatility of common stock returns derived from calculating the standard deviation of daily equity returns. Our proxies for economic risk are designed to capture the essential characteristics of the firms’ operations and assets that determine the cash flow generating process for the firm. For example, firm size and age provide measures of line of- business maturity; tangible assets (plant, property, and equipment) serve as a proxy for the ‘hardness’ of a firm’s assets; capital expenditures measure capital intensity as well as growth potential. Operating profitability and operating profit volatility serve as measures of the timeliness and riskiness of cash flows. To understand how financial factors affect firm risk, we examine total debt, debt maturity, dividend payouts, and holdings of cash and short-term investments.The primary result of our analysis is surprising: factors determining economic risk for a typical company explain the vast majority of the variation in equity volatility. Correspondingly, measures of implied financial leverage are much lower than observed debt ratios. Specifically, in our sample covering 1964-2008 average actual net financial (market) leverage is about 1.50 compared to our estimates of between 1.03 and 1.11 (depending on model specification and estimation technique). This suggests that firms may undertake other financial policies to manage financial risk and thus lower effective leverage to nearly negligible levels. These policies might include dynamically adjusting financial variables such as debt levels, debt maturity, or cash holdings (see, for example, Acharya, Almeida, and Campello, 2007). In addition, many firms also utilize explicit financial risk management techniques such as the use of financial derivatives, contractual arrangements with investors (e.g. lines of credit, call provisions in debt contracts, or contingencies in supplier contracts), special purpose vehicles (SPVs), or other alternative risk transfer techniques.The effects of our economic risk factors on equity volatility are generally highly statistically significant, with predicted signs. In addition, the magnitudes of the effects are substantial. We find that volatility of equity decreases with the size and age of the firm. This is intuitive since large and mature firms typically have more stable lines ofbusiness, which should be reflected in the volatility of equity returns. Equity volatility tends to decrease with capital expenditures though the effect is weak. Consistent with the predictions of Pástor and Veronesi (2003), we find that firms with higher profitability and lower profit volatility have lower equity volatility. This suggests that companies with higher and more stable operating cash flows are less likely to go bankrupt, and therefore are potentially less risky. Among economic risk variables, the effects of firm size, profit volatility, and dividend policy on equity volatility stand out. Unlike some previous studies, our careful treatment of the endogeneity of financial policy confirms that leverage increases total firm risk. Otherwise, financial risk factors are not reliably related to total risk.Given the large literature on financial policy, it is no surprise that financial variables are,at least in part, determined by the economic risks firms take. However, some of the specific findings are unexpected. For example, in a simple model of capital structure, dividend payouts should increase financial leverage since they represent an outflow of cash from the firm (i.e., increase net debt). We find that dividends are associated with lower risk. This suggests that paying dividends is not as much a product of financial policy as a characteristic of a firm’s operations(e.g., a mature company with limited growth opportunities). We also estimate how sensitivities to different risk factors have changed over time. Our results indicate that most relations are fairly stable. One exception is firm age which prior to 1983 tends to be positively related to risk and has since been consistently negatively related to risk. This is related to findings by Brown and Kapadia (2007) that recent trends in idiosyncratic risk are related to stock listings by younger and riskier firms.Perhaps the most interesting result from our analysis is that our measures of implied financial leverage have declined over the last 30 years at the same time that measures of equity price risk (such as idiosyncratic risk) appear to have been increasing. In fact, measures of implied financial leverage from our structural model settle near 1.0 (i.e., no leverage) by the end of our sample. There are several possible reasons for this. First, total debt ratios for non-financial firms have declined steadily over the last 30 years, so our measure of implied leverage should also decline. Second, firms have significantly increased cash holdings, so measures of net debt (debt minus cash and short-term investments) have also declined. Third, the composition of publicly traded firms has changed with more risky (especially technology-oriented)firms becoming publicly listed. These firms tend to have less debt in their capital structure. Fourth, as mentioned above, firms can undertake a variety of financial risk management activities. To the extent that these activities have increased over the last few decades, firms will have become less exposed to financial risk factors.We conduct some additional tests to provide a reality check of our results. First, we repeat our analysis with a reduced form model that imposes minimum structural rigidity on our estimation and find very similar results. This indicates that our results are unlikely to be driven by model misspecification. We also compare our results with trends in aggregate debt levels for all U.S. non-financial firms and find evidence consistent with our conclusions. Finally, we look at characteristics of publicly traded non-financial firms that file for bankruptcy around the last three recessions and find evidence suggesting that these firms are increasingly being affected by economic distress as opposed to financial distress.ConclusionIn short, our results suggest that, as a practical matter, residual financial risk is now relatively unimportant for the typical U.S. firm. This raises questions about the level of expected financial distress costs since the probability of financial distress is likely to be lower than commonly thought for most companies. For example, our results suggest that estimates of the level of systematic risk in bond pricing may be biased if they do not take into account the trend in implied financial leverage (e.g., Dichev, 1998). Our results also bring into question the appropriateness of financial models used to estimate default probabilities, since financial policies that may be difficult to observe appear to significantly reduce risk. Lastly, our results imply that the fundamental risks born by shareholders are primarily related to underlying economic risks which should lead to a relatively efficient allocation of capital.Some readers may be tempted to interpret our results as indicating that financial risk does not matter. This is not the proper interpretation. Instead, our results suggest that firms are able to manage financial risk so that the resulting exposure to shareholders is low compared to economic risks. Of course, financial risk is important to firms that choose to take on such risks either through high debt levels or a lack of risk management. In contrast, our study suggests that the typical non-financial firm chooses not to take these risks. In short, gross financial risk may be important, but firms can manage it. This contrasts with fundamental economic and business risks thatare more difficult (or undesirable) to hedge because they represent the mechanism by which the firm earns economic profits.References[1]Shyam,Sunder.Theory Accounting and Control[J].An Innternational Theory on PublishingComPany.2005[2]Ogryezak,W,Ruszeznski,A. Rom Stomchastic Dominance to Mean-Risk Models:Semide-Viations as Risk Measures[J].European Journal of Operational Research.[3] Borowski, D.M., and P.J. Elmer. An Expert System Approach to Financial Analysis: the Case of S&L Bankruptcy [J].Financial Management, Autumn.2004;[4] Casey, C.and N. Bartczak. Using Operating Cash Flow Data to Predict Financial Distress: Some Extensions[J]. Journal of Accounting Research,Spring.2005;[5] John M.Mulvey,HafizeGErkan.Applying CVaR for decentralized risk management of financialcompanies[J].Journal of Banking&Finanee.2006;[6] Altman. Credit Rating:Methodologies,Rationale and Default Risk[M]．Risk Books,London.译文：财务风险的重要性引言2008年的金融危机对金融杠杆的作用产生重大影响。

公司财务风险中英文对照外文翻译文献

中英文资料外文翻译外文资料Financial ﬁrm bankruptcy and systemic riskIn Fall 2008 when the Federal Reserve and the Treasury injected $85 billion into the insurance behemoth American International Group (AIG), themoney lent to AIGwent straight to counterparties, and very few funds remained with the insurer. Among the largest recipients was Goldman Sachs, to whomabout $12 billionwas paid to undoAIG’s credit default swaps (CDSs). The bailout plan focused on repaying the debt by slowly selling off AIG’s assets, w ith no intention of maintaining jobs or allowing the CDSmarket to continue to function as before. Thus, the government’s effort to avoid systemic risk with AIG was mainly about ensuring that ﬁrms with which AIG had done business did not fail as a result. T he concerns are obviously greatest vis-a-vis CDSs, ofwhich AIG had over $400 billion contracts outstanding in June 2008.In contrast, the government was much less enthusiastic about aiding General Motors, presumably because they believed its failure would not cause major macroeconomic repercussions by imposing losses on related ﬁrms. This decision is consistent with the view in macroeconomicresearch that financialﬁrmbankruptcies pose a greater amount of systemic risk than nonfinancial firmbankruptcies. For example, Bordo and Haubrich (2009) conclude that “...more severe ﬁnancial events are associated withmore severe recessions...” Likewise, Bernanke (1983) argues the Great Depressionwas so severe because ofweakness in the banking systemthat affected the amount of credit available for investment. Bernanke et al. (1999) hypothesize a financial accelerator mechanism, whereby distress in one sector of the economy leads to more precarious balance sheets and tighter credit conditions. This in turn leads to a drop in investment, which is followed by less lending and a widespread downturn. Were shocks to the economy always to come in the form of distress at nonﬁnancial ﬁrms, these authors argue that the business downturns would not be so severe.We argue instead that the contagious impact of a nonfinancial firm’s bankruptcy is expected to be far larger than that of a financial ﬁrm like AIG, although neither would be catastrophic to the U.S. economy through counterparty risk channels. This is not to say that an episode ofwidespread financial distress among our largest banks would not be followed by an especially severe recession, only that such failures would not cause a recession or affect the depth of a recession. Rather such bankruptcies are symptomatic of common factors in portfolios that lead to wealth losses regardless of whether any firm ﬁles for bankruptcy.Pervasive ﬁnancial fragility may occur because the failure of one ﬁrm leads to the failure of other ﬁrms which cascades through the system (e.g., Davis and Lo, 1999; Jarrow and Yu, 2001). Or systemic risk may wreak havoc when a number of ﬁnancial ﬁrms fail simultaneously, as in the Great Depression when more than 9000 banks failed (Benston, 1986). In the former case, the failure of one ﬁrm, such as AIG, Lehman Brothers or Bear Stearns, could lead to widespread failure through ﬁnancial contracts such as CDSs. In the latter case, the fact that so many ﬁnancial institutions have failed means that both the money supply and the amount of credit in the economy could fall so far as to cause a large drop in economic activity (Friedman and Schwartz, 1971).While a weak ﬁnancial systemcould cause a recession, the recession would not arise because one ﬁrm was allowed to ﬁle bankruptcy. Further, should one or the other ﬁrmgo bankrupt, the nonﬁnancial ﬁrmwould have the greater impact on the economy.Such extreme real effects that appear to be the result of ﬁnancial ﬁrm fragility have led to a large emphasis on the prevention of systemic risk problems by regulators. Foremost amo ng these policies is “too big to fail” (TBTF), the logic of which is that the failure of a large ﬁnancial institution will have ramifications for other ﬁnancial institutions and therefore the risk to the economywould be enormous. TBTF was behind the Fed’s decisions to orchestrate the merger of Bear Stearns and J.P.Morgan Chase in 2008, its leadership in the restructuring of bank loans owed by Long Term Capital Management (LTCM), and its decision to prop up AIG. TBTF may be justiﬁed if the outcome is preven tion of a major downswing in the economy. However, if the systemic risks in these episodes have been exaggerated or the salutary effects of these actions overestimated, then the cost to the efﬁciency of the capital allocation system may far outweigh any po tential beneﬁts from attempting to avoid another Great Depression.No doubt, no regulator wants to take the chance of standing down while watching over another systemic risk crisis, sowe do not have the ability to examine empiricallywhat happens to the economy when regulators back off. There are very fewinstances in themodern history of the U.S.where regulators allowed the bankruptcy of amajor ﬁnancial ﬁrm.Most recently,we can point to the bankruptcy of Lehman,which the Fed pointedly allowed to fail.However,with only one obvious casewhere TBTFwas abandoned, we have only an inkling of how TBTF policy affects systemic risk. Moreover, at the same time that Lehman failed, the Fed was intervening in the commercial paper market and aiding money marketmutual fundswhile AIGwas downgraded and subsequently bailed out. In addition, the Federal Reserve and the Treasury were scaremongering about the prospects of a second Great Depression to make the passage of TARPmore likely. Thuswewill never knowifthemarket downturn th at followed the Lehman bankruptcy reﬂected fear of contagion from Lehman to the real economy or fear of the depths of existing problems in the real economy that were highlighted so dramatically by regulators.In this paper we analyze the mechanisms by which such risk could cause an economy-wide col-lapse.We focus on two types of contagion that might lead to systemic risk problems: (1) information contagion,where the information that one ﬁnancial ﬁrmis troubled is associatedwith negative shocksat other ﬁnanc ial institutions largely because the ﬁrms share common risk factors; or (2) counterparty contagion,where one important ﬁnancial institution’s collapse leads directly to troubles at other cred-itor ﬁrms whose troubles snowball and drive other ﬁrms into distress. The efﬁcacy of TBTF policies depends crucially on which of these two types of systemic riskmechanisms dominates.Counterparty contagion may warrant intervention in individual bank failureswhile information contagion does not.If regulators do not ste p in to bail out an individual ﬁrm, the alternative is to let it fail. In the case of a bank, the process involves the FDIC as receiver and the insured liabilities of the ﬁrmare very quickly repaid. In contrast, the failure of an investment bank or hedge fund does not involve the FDIC andmay closely resemble a Chapter 11 or Chapter 7 ﬁling of a nonﬁnancial ﬁrm. However, if the nonbank ﬁnancial ﬁrm inquestion has liabilities that are covered by the Securities Industry Protection Corporation (SIPC), the ﬁrmi s required by lawunder the Securities Industry Protection Act (SIPA) to liquidate under Chapter 7 (Don and Wang, 1990). This explains in large partwhy only the holding company of Lehman ﬁled for bankruptcy in 2008 and its broker–dealer subsidiaries were n ot part of the Chapter 11 ﬁling.A major fear of a ﬁnancial ﬁrm liquidation, whether done through the FDIC or as required by SIPA, is that ﬁre sales will depress recoveries for the creditors of the failed ﬁnancial ﬁrm and that these ﬁre saleswill have ramiﬁcations for other ﬁrms in related businesses, even if these businesses do not have direct ties to the failed ﬁrm (Shleifer and Vishny, 1992). This fear was behind the Fed’s decision to extend liquidity to primary dealers inMarch 2008 – Fed Chairman Bernanke explained in a speech on ﬁnancial system stability that“the risk developed that liquidity pressuresmight force dealers to sell assets into already illiquid markets. Thismight have resulted in...[a] ﬁre sale scenario..., inwhich a cascade of failures andliquidations sharply depresses asset prices, with adverse ﬁnancial and economic implications.”(May 13, 2008 speech at the Federal Reserve Bank of Atlanta conference at Sea Island, Georgia) The fear of potential ﬁre sales is expressed in further detail in t he same speech as a reason for the merger of Bear Stearns and JP Morgan:“Bear...would be forced to ﬁle for bankruptcy...[which] wouldhave forced Bear’s secured creditors and counterparties to liquidate the underlying collateral and, given the illiquidity of markets, those creditors and counter parties might well have sustained losses. If they responded to losses or the unexpected illiquidity of their holdings by pulling back from providing secured ﬁnancing to other ﬁrms, a much broader liquidity crisis wou ld have ensued.”The idea that creditors of a failed ﬁrm are forced to liquidate assets, and to do so with haste, is counter to the basic tenets of U.S. bankruptcy laws, which are set up to allow creditors the ability to maximize the value of the assets now under their control. If that value is greatest when continuing to operate, the laws allow such a reorganization of the ﬁrm. If the value in liquidation is higher, the laws are in no way prejudiced against selling assets in an orderly procedure. Bankruptcy actually reduces the likelihood of ﬁre sales because assets are not sold quickly once a bankruptcy ﬁling occurs. Cash does not leave the bankrupt firm without the approval of a judge.Without pressure to pay debts, the ﬁrm can remain in bankruptcy for months as it tries to decide on the best course of action. Indeed, a major complaint about the U.S. code is that debtors can easily delay reorganizing and slow down the process.If, however, creditors and management believe that speedy assets sales are in their best interest, then they can press the bankruptcy judge to approve quick action. This occurred in the case of Lehman’s asset sale to Barclays,which involved hiring workers whomight have split up were their divisions not sold quickly.金融公司破产及系统性的风险2008年秋，当美联邦储备委员会和财政部拒绝85亿美金巨资保险投入到美国国际集团时，这边借给美国国际集团的货款就直接落到了竞争对手手里，而投保人只得到极少的一部分资金。

企业负债经营的问题与对策外文文献翻译

IntroductionWith the rapid growth of the global economy, many enterprises have resorted to borrowing as a means to finance their operations. While debt funding can be an effective way to garner capital investment, it can also lead to excessive debt accumulation which may negatively impact the overall financial stability and liquidity of the business. In this context, this paper aims to provide an analysis of the problems and possible solutions related to enterprises operating with largeamounts of debt.Problems Arising from Overreliance on Debt FinancingOne of the main problems of too much debt accumulation is that enterprises become overburdened by the need to keep up with the payments of their loans. This greatly reduces their financial stability, as they may not have sufficient funds to invest in new projects or long-term strategies. Furthermore, excessive debt may lead to high interest rates, reducing the profitability of the businessand increasing the risk of default.Another problem related to excessive debt accumulation is that it can affect key stakeholders such as suppliers, investors, and employees. For example, suppliers may start to view enterprises as high credit risks and may therefore require upfront payments or request for shorter payment terms. Investors may become hesitant to invest in the business, and employees may face cuts in salaries or job losses due to the need for cost-cutting measures.Possible Solutions to Debt ProblemsThere are several measures that a business can take to address debt problems. Firstly, the enterprise can engage in a debt-restructuring plan to refinance its debt obligations. This may involve negotiating with lenders for payment terms that better match the enterprise’s financial situation. Additionally, the enterprise may seek to finance its operations through equity investment rather than debt funding, thereby reducing its reliance on loans.Another way to deal with debt problems is through cost-cutting measures such as reducing the size of the workforce or renegotiating supplier contracts. This may help to alleviate short-term financial difficulties and free up resources to pay off Outstanding loans.Finally, a proactive approach to managing debt risks is to ensure that the enterprise has a solid financial plan in place. This may involve regular reviews of the enterprise’s financial statements, benchmarking against industry standards, and implementingproper debt management policies. ConclusionIn conclusion, enterprise debt is a significant problem that can hinder the financial stability, profitability, and long-term prospects of a business. To address this issue, enterprises must take a proactive approach to managing their debt levels through measures such as debt-restructuring plans, cost-cutting measures, and implementing proper financial management policies. With proper management, enterprises cansecure long-term sustainability and ensure that their financial future remains bright.。

外文翻译---上市公司财务舞弊原因及对策

外文翻译---上市公司财务舞弊原因及对策Reasons and countermeasures of listed companies ' financial fraud Pick to: financial fraud accompanied by China's reform and opening process and continuous development, bring social harm is more and more apparent, whether to financial fraud effective management by thepeople's widespread concern. On the listed company's financial fraud concepts and methods were summarized, from the interest drive, corporate governance, accounting personnel occupation moral standards, accounting and auditing system, in-depth analysis of the causes of financial fraud, and in view of the above reasons put forward the corresponding control measuresKey words: financial fraud; reasons; control countermeasures; listed companyIntroductionSince the beginning of Enron in late 2001, cases of financial fraud in listed companies at home and abroad frequently burst out. In early 2006, the Shanghai national accounting Institute Research Center for financial fraud (snaiFFRC) disclosed to "kelong" headed by the "2005 top ten most fraudulent financial companies of the listed companies" meansis more amazing the financial fraud of "smart". Self, circulating trading, trading of yin and Yang, the packing channels, always accounting errors, large bath, mergers and acquisitions, restructuring,concealed stocks, the report cash traps, this is a top ten listing companies financial fraud trick.One, the concept of financial fraud and wayFinancial fraud is the subject of false financial information processing in accounting and reporting process, to obtain undue economic interests, used deceptive means to intentionally lied about the importance and financial facts of violations of laws and substantive violations. Financial fraud has four characteristics: unlawful, intentional sexuality, danger, and concealment. Specific means of financial fraud can be said to be endless, but the core is intact. Income fraud including fictitious earnings and revenue across periods; cost of fraud including cross-phase meter cost less and adjustment costs as well as costs of capital; corrupt cash fraud, should be the project assets, such as fraud, less provision for impairment; liabilities are generally less-total liabilities of fraud.Financial fraud means basically has the following several aspects:1. the use of improper accounting policies and accounting fraud. Management typically useintertemporal amortization class accounts for many share, share more, less or less cost to adjustprofit. (1) the selection of inappropriate borrowing costsaccounting method. In practice, manylisted company through misuse of borrowing costs accounting, inbuild a project completed andnot the final. (2) improper selection of equity investment accounting methods. Principles ofenterprise accounting regulations: investment enterprises of joint control or significant influence,should adopt equity method; instead, it uses the cost method.But many companies use, when theinvestee company profit, should not use the equity method investment using the equity methodof accounting; when the investee company loss, the equity method to the cost method . (3)improper selection of merging policy. (4) the improper selection of depreciation method.Extended depreciation, by accelerating method is changed into the straight line method, inpractice it is often seen. (5) the improper selection of income, cost confirmation method.Advance or delay the confirmation of income or expense is alsolisted companies generallyadopt cheating. (6) the improper selection of the impairment provision method.2. use of enterprise internal control system defects and the weak link of fraud. As the cashier personnel use enterprise blank check, financial dedicated seal, legal person seal does not separate keepingmalpractice, privately issued checks, misappropriation of public funds. Cozy with his duties incompatible staff collude with a fraud.3.related party transaction fraud. The related party transaction fraud, refers to the management using the related party transaction to hide losses, fictitious profits, and not in the statements and notes in accordance with the provisions as appropriate, full disclosure, the resulting information will have on the users of financial statements misleading a fraud method. Typically, Chinese listed companies using the purchase and sale of related fraud, fraud, entrusted with the operation of funds embezzlement, fraud and other four kinds of cost sharingrelated transactions by way of fictitious profit.4. the assets of fraud. Asset restructuring, mergers and acquisitions, debt restructuring, asset replacement form, occurring between the related parties. Assets reorganization of corrupt corrupt corrupt major mergers and acquisitions and debt restructuring in two ways.5. cover up fraud transaction or fact. Hide transaction or fact of fraud is through the use of accounting statements to hide transactions of listed companies or the truth, or has not been fully disclosed in the notes to the report deals truth an fraud methods.Second, the causes of listed companies ' financial malpracticeListed companies ' financial malpractice caused several of the following reasons:1. financial return far greater than the cost of fraud. To meetlisting standards at some companies desperate to find ways to make financial fraud, and fraud, to meet the policy requirements. In addition, because the share price is times the income and earnings per share, and high stock market price/earnings ratio of deformity in China, so the main purpose of listed company's financial fraud is false profits. False profits of $ 1, the circulation market value of listed companies will increase 10 times times times. Relative to the fraud fraud income, cost is too low, from a certain extent, it is too low a fraud costcontributed some fraud.2. corporate governance structure is not perfect. Corporate governance structure is in fact about between owners, the Board of Directors and senior executive officers rights assigned and the arrangement of a system of checks and balances, the reality in China,led directly to the equity structure of listed companies malformations include the general meeting of shareholders, Board of Directors, Boardof supervisors, which distort the relationship between corporate governance structure of checks and balances, which has provided an opportunity for financial fraud in listed companies. This is mainly manifested in the following aspects: (1) the ownership structure is not reasonable. As of the second half of 2006, the Shanghai and Shenzhen stock market, shares of over50 listed companies only 185, largest shareholder holding ratio ofno more than 25 and only 219, 60~70 listed companies have invaded andoccupied by large shareholders of listed company's funds. In the case of high concentration of ownership, possibilities of treatment failure of listed companies increased, listed companies, the greater possibility of financial fraud. (2) the independence of the Board is not strong,internal control is a serious problem. China listed company Director served as Senior Manager of the phenomenon is more prevalent, Director serves as the Senior Manager (internal control) more than 50 per cent of the sample company 32, more than 30 per cent of a sample of 65 companies. In this case, the operation of the Board is usually "Insider" or shareholder control, rather than based on the collective interest. This has led to the phenomenon of frequent corporate financial fraud. (3) the Supervisory Board weakening the oversight function, financial report difficulty in discharging its oversight functions. Based on analysis of listed company financial reporting fraud, Board of supervisors system in suppression of financial fraud in China did not play a role of Directors and managers of monitoring. Listed companies are required by law to set up a supervisory board, Board of supervisors actually are in a very awkward position, lower right or upper right of vulnerable rights of supervision or stronger right.3. accounting staff lack of professional ethics. Finance and accounting personnel who are directly involved in financial fraud, from the macro perspective, is mainly long term and not enough on accounting ethics education, lack of accounting professional standards; micro-perspective, strong sense of company accountants law, in order to meetcompany leaders of unhealthy psychological, thus violating the ethics of being practical and realistic, objective and fair. In addition, individuals driven by economic interests, has also led to some accountants deliberately forged, altered, hiding and destroyed the accounting information, taking advantage of his position of financial fraud.4. accounting and audit system is not sound. In recent years,although China is making a lot of accounting and auditing legislation, but from the practical point of view are not perfect and sound. Poor operability of some provisions, resulting in accounting fraud an opportunity. New accounting law "legal responsibility" chapter referred to "serious", "criminal", "significant losses" are not quantified, hasno specific explanation. 2006 implementation of new accounting standards, provided more accounting options for management, which provides management with more profit opportunities. In addition, lack of punishment measures, social supervision is not strong, quality performance evaluation of accounting does not work, no ability to detect fraud, also can lead to occurrence of listed companies ' financial malpractice.Third, the governance of listed companies’financial fraud countermeasures1. coordinating the relationship between benefits and costs of financial fraud. We should increase the penalties for financial fraud, financial fraud costs more than it gains, so you can basically stopfinancial fraud. At the same time, in charge of financial malpractice should bear unlimited joint and several financial responsibility, which can to a large extent, inhibit their impulses of illegal counterfeiting. For those who dare to report the accounting officer shall provide ample rewards, so that its behavior is greater than the loss of income to report financial fraud. In this way, financial malpractice liability and they will take the initiative to give up the idea of financial fraud.2. perfect the corporate governance structure. Improve the internal governance structure of thecompany, is to prevent financial fraud, improve the quality of accounting information. (1) to improve the company's ownership structure, can solve the status of minority shareholders and the controlling shareholder is not symmetric. (2) the perfection of listed company's Board. In the establishment of external independent directors on the Board of the company, and provides that a certain proportion of the external independent directors, and established a number of specialized committees, raise the level of professionalization of the Board, to play the role of the Board. (3) improvement Board of supervisors of listed companies. As the Board of supervisors a mere formality, only to standin the governance structure of the company, to further improve the system of Board of supervisors.3. raising the level of professional ethics of accountants. State management and accounting departments, should continuously strengthenthe ideological education of accountants and accounting staff levelscontinue to improve, making it able to consciously resist financial malpractice, gradually establishing accounting integrity and fair image.4. accounting and auditing systems. Accounting standards and the flexibility of the system is the important basis for financial fraud to achieve. First of all, according to China's actual conditions,principles of system of accounting standards and make appropriate adjustments, in general lack of ethical culture in China now, improving the reliability of the accounting report is the key. Second, correctly handle the relationship between consistency and flexibility, reducingthe options available to the company within the scope of accounting system as much as possible, especially when it comes to income and expenses recognized measuring principle, the depreciation of fixed assets, eight-asset impairment provision ratio and maximum detailed provisions should be made. Introduce specific implementation detailswill be quantitative and specific legal responsibility to explain, this has the advantage of parties a clear financial consequences of fraud, also in favour of the relevant departments to determine the financial fraud and punishable by appropriate penalties. Finally, give full playto the role of public opinion and the media. As the perfection of the securities market, market supervision is not limited to certified public accountants and the Government, the general public and the media hasalso been involved in the regulatory process.The endAt present, China is in an early stage of market economy, all kindsof deceptive behaviors emerge, accounting activity as a measure of economic activity, inevitably financial fraud. Financial fraud is not only an economic phenomenon, is also a visualization of the deep moral conviction. So, on the governance of financial fraud is a systems engineering, business, community and government supervision of Trinity system is required in all departments and make concerted efforts, coordinate with each other. Only an integrated approach to governance,to create good information environment for China's economic development.Reference.[1] Hou Yanlei, Zhai Yingmin. The financial fraud of listedcompanies analysis [J]. Economy and management,2006, (7):71-73.[2] Huang Xinjian . Chinese listed company's financial fraud and the Countermeasures Research [J]. Economic survey,2006, (4):77-79.[3] Wang Jianxin. The financial fraud of listed companies : motives and management [J ]. Market modernization,2008, (2):346-347.[4] Yang Yunshu . The financial fraud of listed companies analysis[J ]. Accounting research,2006, (5):62-63.[5]You Xiaofeng. Chinese Research on financial governance of Listed Companies [ M]. Beijing: Economic Science Press,2005: 144-145.[6] Zhang Aimin. The combination of internal and external,prevention of financial fraud of Listed Companies [ J]. Contemporary economy,2006, (2):18-19.[7]Hong Ge. Fraud in financial reports of listed companies governance approach [J]. Economic review,2005, (9):117-137.[8]Wang Haixia. Internal governance structure in listed companies and the prevention of financial fraud [J]. Auditing & Finance,2005, (7):23-24.上市公司财务舞弊原因及对策摘要:财务舞弊行为伴随着中国改革开放的进程而不断演进发展～带给社会的危害也愈来愈明显～能否对财务舞弊行为进行切实有效地治理受到人们的普遍关注。

财务报表分析中英文对照外文翻译文献

文献信息文献标题: The Need Of Financial Statement Analysis In A Firm or0 rgnization(企业或机构财务报表分析的必要性)国外作者: Suneetha G 文献出处:《International Journal of Science Engineering and Advancel Technology (.JSEAT)) 2017, 5(6): 731-735字数统计:2541单词,15110字符;中文4377汉字外文文献:The Need Of Financial Statement AnalysisIn A Firm Or An Orgnization Abstract Financial statement analysis play a dominate role in setting the frame watt of managerial decisions through analysis and interpretation of financial statement This paper discusses about financial , strength and weakness of the company by properly establishing relationship between the items of balance shed and profit and loss account. In order to judge the profitability and financial soundness of the company horizontal, and vertical analyze or done. The various technique used in analyzing financial statement included 'comparative statement, common size statement, trend analysis and ratio analysis. The results suggest that the ratio approach is a highly useful tool in financial statement analysis, especially when a set of ratios is used to evaluate a firm's performanceKey words: Financial statement analysis, to evaluate a firm's performance Comparative statement. Common size statement, trend analysis and ratio analysis1 Introductionhe basis for financial analysis planning and decision making is financiainformation/a business firm has to prepares its financial accounts viz.. balance sheet profit and loss account which provides useful financial information for the purpose of decision making Financial information is needed to predict. Compare and evaluate the fin's earnings ability. The formers statements viz. profit and loss account shows that operating activities of the concern and the later balance sheet depicts the balance value of the acquired assets and of liabilities at a particular point of time. However these statements don't disclose all of the necessary for ascertaining the financial strengths and weaknesses of an enterprise. it is necessary to analyze the data depicted n the financial statements. The finance manager has certain analytical tools which helps is financial analysis and planning. [Doron nissim, stephen h. Penman, (2003) Financialstatement Analysis of Leverage and How it Informs About Profitability and Price-to-book Ratios. Survey of Accounting Studies. Kluwer Academic PublishersAs per examine by Dissim. StephePenman' on Financia proclamation investigation of Leverage and how it illuminates about gainfulness and cost to book proportions, money related explanation examination that recognizes use that emerges in financing exercises from use that emerges in operations. The examination yields two utilizing conditions. one for getting to back operations and one for obtaining over the span of operations. This examination demonstrates that the budgetary explanation investigation clarifies cross-sectional contrasts in present and future rates of return and additionally cost to-snare proportions, which depend onexpected rates of profit for value. This investigation helps in understandorkins influence contrasts in productivity in the cross-areas. changes in future productivity from current benefit and legally binding working liabilities from evaluated liabilities Yating Van, HW. Chuang, (2010) Financial Ratio Adjustment Process: Evidence from Taiwan and North America, ISSN 1450-2887 Issue 43 (2010)0 Euro Journa Publishing Inc. 20102. Financial statements analysisprocess of identifying the financial strengths and weaknesses of a firm from the available accounting data and financial statements. The analysis is done by properly establishing the relationship between the items of balance sheet and profitnd loss account. The first task of the financial analyst is to determine the information relevant the decision under consideration from the total information contained in financial statement. The second step is to arrange information in a way to highlightsignificant relationships. The final step is interpretation and drawing of infed conclusions. Thus financial analysis is the process of selection, relating and evaluation of the accounting data or informationPurpose of financial statements analysis Financial statements analysis is the meaningful interpretation of 'financial statements for panics demanding financial information. It is not necessary for the proprietors alone. In general, the purpose of financial statements analysis is to aidmaking between the users of accounts To evaluate past performance and financial position To predict future performance Tools and techniques of financial analysis Comparative balance sheet common size balance shee Trend analysis Ratio analysis Comparative balance sheet Comparative financial statements is a statement of the financial position of a business so designed as to facilitate comparison of different accounting variables for drawing useful inferences. Financial statements of two or more business enter prices may be compared over period of years. This is known as inter firm comparison Financial statements of the particular business enter pries may be compared over two periods of years. This is known inter period comparisonCommon size statements It facilities the comparison of two or more business entities with a commonbase .in case of balance sheet, total assets or liabilities or capital can be taken ascommon base. These statements are called common measurements or components percentage or 100 percent statements. Since each statement is representated as a %ofthe total of 100 which in variably serves as the baseIn this manner the announcements arranged to draw out the proportion of every benefit of risk to the aggregate of the monetary record and the proportion of every thing of cost or incomes to net deals known as the basic size articulationsPattern investigation Even examination of money related explanations can likewise be completed by figuring pattern rates. Pattern rate expresses quite a long while's budgetary formation as far as a base year. The base year rises to 100 % with every single other year expressed in some rate of this baseProportion investigation Proportion investigation is the technique or process by which the relationship of things or gatherings of things in the budgetary proclamations are registered. decided and introduced. Proportion investigation is an endeavor to determine quantitative measures or aides concerning the money related wellbeing and benefit of the business nture. Proportion investigation can be utilized both in pattern and static examinationhere are a few proportions at the examiner yet the gathering of proportions he wouincline toward relies upon the reason and the destinations of the investigationBookkeeping proportions are viable apparatuses of examination; they are pointers of administrative and over all operational productivity. Proportions, when appropriately utilized are fit for giving valuable data. proportion examination characterized as the deliberate utilization of proportions to decipher the money related explanations with the goal that the qualities and shortcomings of a firm and in addition its chronicled execution and current monetary condition can be resolved the term proportion alludes to the numerical or quantitative connection between things factors this relationship can be communicated as (Fraction (2)Percentages (3)Proportion of numbers These option strategies for communicating things which are identified with eacstigation,examination. It ought to be seen that processing the proportion does not include data in the figures of benefit or deals. What the proportions do is that they uncover the relationship in a more important manner in order to empower us to reach inferences from th As indicated by look into by the Yating yang and 11. W. Chuang. on 'Monetary Ratio Adjustment Process: Evidence from Taiwan and North America. measurable legitimacy of the proportion strategy in monetary articulation examination is researched. The outcomes hence recommend that the proportion approach is a valuable instrument in monetary explanation investigation, particularly when an arrangement of proportions is utilized to assess an association's execution. The straightforwardness of this strategy additionally underpins the utilization of proportions in money related basic leadership3.Money related proportions in perspective of GAAGAAP is the arrangement of standard systems for recording business exchanges and detailing accounting report passages. The components of GAAP incorporatethings onetaryd. and how to ascertain exceptional offer estimations. The models fused into (MAP give general consistency in assumes that are thusly used to ascertain imperative money related proportions that financial specialists and investigators use to assess the organization. Indeed, even agreeable monetary records can be trying to unravel, yet without a framework characterizing every class of section, corporate money related articulations would be basically dark and uselessThere are seven fundamental rule that guide the foundation of the Generall Accepted Accounting Principles. The standards of normality, consistency, perpetuality and genuineness go towardsurging organizations to utilize the legitimate bookkeeping hones quarter after quarter in a decent confidence push to demonstrate the genuine money related state of the organization. None remuneration judiciousness and progression build up rules for how to set up a monetary record, by and large to report the budgetary status of the organization as it is without treatin resources in irregular ways that distort the operations of the organization just to balance different sections. The rule of periodicity basic implies that salary to be gotten extra time ought to be recorded as it is booked to be gotten, not in a singular amountThe brought together arrangement of bookkeeping in this manner has various advantages. Not exclusively does it give a specific level of straightforwardness into an organization's funds. it likewise makes for generally simple examinations between organizations. Subsequently, GAAPempowers venture by helping financial specialists pick shrewdly. GAAP gives America organizations preference over remote ones where financial specialists, unless they have a cozy comprehension of the business may have a great deal more trouble figuring the potential dangers and prizes of a venture. GAAP applies to U.S.-based enterprises just, however every other real nation has bookkeeping measures set up for their local organizations. Now and again remote bookkeeping is genuinely like U.S. GAAP, changing in just minor and fectively represented ways. In different cases, the models change fundamentally aking direct examinations questionable, best case scenarioAdvantages and Limitations of Financial Ratio Analysis Financial ratio analysis is a useful tool for users of financial statement. It hasFocal pointselated proclamations It helps in contrasting organizations of various size and each other. It helps in drift examination which includes looking at a solitary organization over a period It highlights imperative data in basic frame rapidly. A client can judge an organization by simply taking a gander at few number as opposed to perusing of the entire monetary explanationsRestrictions Regardless of convenience, finance.ial proportion examination has a few burdens Some key faults of budgetary proportion examination areDifferent organizations work in various enterprises each having distinctive natural conditions, for example, control, showcase structure, and so on. Such factors curve so huge that a correlation of two organizations from various ventures may beecelvilFinancial bookkeeping data is influenced by assessments and presumptions Bookkeeping principles permit diverse bookkeeping arrangements, which disables likeness and subsequently proportion examination is less helpful in suchcircumstancesRatio investigation clarifies connections between past data while clients are more worried about present and future datThe investigation helps for breaking down the alteration procedure of moneelated proportionsmodel states three impacts which circular segment an association's interior impact, expansive impact, and key administration. It encourages(That a company's budgetary proportions reflect unforeseen changes in the business(2)Active endeavors to accomplish the coveted focus by administration and (3)An individual association's money related proportion developmentMonetary proclamations investigation is the way toward looking at connections among components of the organization's "bookkeeping articulations" or money related explanations (accounting report, salary articulation. proclamation of income and the announcement of held profit) and making correlations with pertinent data. It is a significant instrument utilized by financial specialists. leasers, monetary investigators proprietors. administrators and others in their basic leadership handle The most well known sorts of money related explanations examination curveHorizontal Analysis: monetary data are thought about for at least two years for a solitary organizationVertical anaery thing on a solitary monetary explanation is figured as a rate of an aggregate for a solitary organizationRatio Analysis: analyze things on a solitary budgetary articulation or look at the connections between things on two monetary proclamationsMoney related proportions examination is the most widely recognized type o budgetary explanations investigation. Monetary proportions delineate connections between various parts of an organization's operations and give relative measures of the company's conditions and execution. Monetary proportions may give intimationsand side effects of the money related condition and signs of potential issue regionsby and large holds no importance unless they are looked at against something else, as past execution, another organization/contender or industry normal. In this way, the proportions of firms in various enterprises, which confront distinctive conditions, are generally difficult to analyzeMoney related proportions can be a critical instrument for entrepreneurs and dministrators to gauge their advance toward achieving organization objectives, an toward contending with bigger organizations inside an industry; likewise, followin different proportions after some time is an intense approach to recognize patterns Proportion examination, when performed routinely after some time, can likewise give assistance independent ventures perceive and adjust to patterns influencing their operationsMoney related proportions are additionally utilized by financiers. Speculators and business experts to survey different traits of an organization's monetary quality or working outcomes, this is another motivation behind why entrepreneurs need to comprehend money related proportions in light of the fact that, all the time, a business' capacity to get financing or value financing will rely upon the organization's budgetary proportions. Money related proportions are ordered by the monetary part of he business which the proportion measures. Liquidity proportions look at the ccessibility of organization's money to pay obligation. Productivity proportions measure the organization's utilization of its benefits and control of its costs to create a satisfactory rate of return. Use proportions look at the organization's techniques for financing and measure its capacity to meet budgetary commitments. Productivity proportions measure how rapidly a firm changes over non-money resources for money resources. Market proportions measure financial specialist reaction to owning an organization's stock and furthermore the cost of issuing stockProportion Analysis is a type of Financial Statement Analysis that is utilized acquire a snappy sign of an association's money related execution in a few key territories. Proportion investigation is utilized to assess connections among money related proclamation things. The proportions are utilized to distinguish inclines after some time for one organization or to look at least two organizations at one point in ime. Money related explanation proportion investigation concentrates on three key parts of a business: liquidity, benefit, and dissolvability The proportions are sorted as Short-term Solvency Ratios, Debt MaRatios and Asset management Ratios. Productivity Ratios, and Market Value ratios Proportion Analysis as an instrument has a few vital elements. The information, which are given by budgetary proclamations. are promptly accessible. The calculation of proportions encourages the examination of firms which contrast in measure oportions can be utilized to contrast anassociation's money related execution and industry midpoints. What's more, proportions can be utilized as a part of a type of ttern investigation to recognize zones where execution has enhanced or crumbled after some time. Since Ratio Analysis depends on bookkeeping data, its adequacy is restricted by the bends which emerge in budgetary explanations because of such things as Historical Cost Accounting and swelling. Thusly, Ratio Analysis should just be utilized as an initial phase in money related examination, to get a snappy sign of an association's execution and to distinguish territories which should be explored further.中文译文:企业或机构财务报表分析的必要性摘要财务报表分析在制定管理决策框架方面起着主导作用,其方法是通过对财务报表进行分析和解释。

企业财务状况评价外文文献及翻译

企业财务状况评价外文文献及翻译摘要本文通过对国内外财务状况评价相关外文文献的调研和翻译，总结了不同学者对企业财务状况评价的方法和指标，以及其对企业经营决策和风险管理的影响。

同时，还分析了现有文献中的研究局限，并提出了相应的进一步研究方向。

引言企业财务状况的评价在企业经营决策和风险管理中具有重要的作用。

随着全球经济的不断发展，企业财务状况评价的方法和指标也得到了不断的完善和更新。

本文旨在通过对国内外相关文献的调研和翻译，探讨企业财务状况评价的相关内容。

方法本文通过检索相关数据库和学术期刊，筛选了一批与企业财务状况评价相关的外文文献。

然后，进行了文献综述和内容翻译，并总结出其中的关键信息和研究成果。

结果1. 企业财务状况评价方法根据文献翻译和分析，目前学者们在企业财务状况评价方面主要采用以下方法：- 财务比率分析：通过对企业财务报表的比率分析，评估企业的偿债能力、盈利能力、运营效率等方面的状况。

- 资产负债表分析：通过对企业资产负债表的分析，揭示企业的资产结构、债务水平和净资产价值等方面的情况。

- 现金流量分析：通过对企业现金流量表的分析，探讨企业的现金流入流出情况以及可持续性问题。

- 经验判断和专家评估：通过对企业经营情况的判断和专家的评估，综合考虑多个因素对企业财务状况的影响。

2. 企业财务状况评价指标研究发现，在企业财务状况评价中，常用的指标包括：- 流动比率：反映企业短期偿债能力的指标。

- 速动比率：更加严格地评估企业短期偿债能力的指标。

- 盈利能力指标：如净利润率、毛利率等，用于评估企业的盈利水平。

- 储蓄比率：评估企业的盈利再投资能力的指标。

- 负债比率：反映企业债务水平和承担风险的指标。

3. 对企业经营决策和风险管理的影响学者们的研究表明，企业财务状况评价对企业经营决策和风险管理有重要影响。

合理评估企业财务状况可以帮助企业制定更加科学的经营决策，提高企业效益和竞争力。

同时，对企业财务状况的评价还可以帮助企业及时发现和应对潜在的经营风险，降低经营风险带来的不确定性。

面临财务困境英文作文

面临财务困境英文作文英文：Facing Financial Difficulties。

I have recently found myself in a difficult financial situation. It's not something that I ever thought would happen to me, but circumstances beyond my control have led me to this point.One of the biggest challenges I'm facing is a lack of income. I lost my job a few months ago and have been struggling to find a new one ever since. Without a steady source of income, it's been tough to keep up with my bills and other financial obligations.Another issue I'm dealing with is debt. I've accumulated a significant amount of debt over the years, and it's starting to catch up with me. I've been trying to make payments and stay on top of it, but it's beendifficult without a steady income.To make matters worse, I don't have much in the way of savings. I've always struggled with saving money, and now I'm paying the price for it. Without any savings to fall back on, I'm feeling the pressure to get my finances in order.Despite all of these challenges, I'm trying to stay positive and proactive. I'm actively searching for a new job and exploring other ways to increase my income. I'm also looking for ways to cut back on my expenses and pay down my debt.It's not going to be easy, but I'm determined to get through this and come out stronger on the other side.中文：面临财务困境。

(完整版)企业并购财务问题分析外文文献及翻译

M & Financial AnalysisCorporate mergers and acquisitions have become a major form of capital operation. Enterprise use of this mode of operation to achieve the capital cost of the external expansion of production and capital concentration to obtain synergies, enhancing competitiveness, spread business plays a very important role. M & A process involves a lot of financial problems and solve financial problems is the key to successful mergers and acquisitions. Therefore, it appears in merger analysis of the financial problems to improve the efficiency of M & Finance has an important practical significance.A financial effect resulting from mergers and acquisitions1. Saving transaction costs. M & A market is essentially an alternative organization to realize the internalization of external transactions, as appropriate under the terms of trade, business organizations, the cost may be lower than in the market for the same transaction costs, thereby reducing production and operation the transaction costs.2. To reduce agency costs. When the business separation of ownership and management, because the interests of corporate management and business owners which resulted in inconsistencies in agency costs, including all contract costs with the agent, the agent monitoring and control costs. Through acquisitions or agency competition, the incumbent managers of target companies will be replaced, which can effectively reduce the agency costs.3. Lower financing costs. Through mergers and acquisitions, can expand the size of the business, resulting in a common security role. In general, large companies easier access to capital markets, large quantities they can issue shares or bonds. As the issue of quantity, relatively speaking, stocks or bonds cost will be reduced to enable enterprises to lower capital cost, refinancing.4. To obtain tax benefits. M & A business process can make use of deferredtax in terms of a reasonable tax avoidance, but the current loss of business as a profit potential acquisition target, especially when the acquiring company is highly profitable, can give full play to complementary acquisitions both tax advantage. Since dividend income, interest income, operating income and capital gains tax rate difference between the large mergers and acquisitions take appropriate ways to achieve a reasonable financial deal with the effect of tax avoidance.5. To increase business value. M & A movement through effective control of profitable enterprises and increase business value. The desire to control access to the right of the main business by trading access to the other rights owned by the control subjects to re-distribution of social resources. Effective control over enterprises in the operation of the market conditions, for most over who are in competition for control of its motives is to seek the company's market value and the effective management of the condition should be the difference between the market value.Second, the financial evaluation of M & ABefore merger, M & A business goal must be to evaluate the financial situation of enterprises, in order to provide reliable financial basis for decision-making. Evaluate the enterprise's financial situation, not only in the past few years, a careful analysis of financial reporting information, but also on the acquired within the next five years or more years of cash flow and assets, liabilities, forecast.1. The company liquidity and solvency position is to maintain the basic conditions for good financial flexibility. Company's financial flexibility is important, it mainly refers to the enterprises to maintain a good liquidity for timely repayment of debt. Good cash flow performance in a good income-generating capacity and funding from the capital market capacity, but also the company's overall Profitability, Profitability is the size of which can be company's overall business conditions and competition prospects come to embody. Specific assessment, the fixed costs to predict the total expenditures and cash flow trends, the fixed costs and discretionary spendingis divided into some parts of constraints, in order to accurately estimate the company's working capital demand in the near future, on the accounts receivable turnover and inventory turnover rate of the data to be reviewed, should include other factors that affect financial flexibility, such as short-term corporate debt levels, capital structure, the higher the interest rate of Zhaiwu relatively specific weight.2. Examine the financial situation of enterprises also have to assess the potential for back-up liquidity. When the capital market funding constraints, poor corporate liquidity, the liquidity of the capital assessment should focus on the study of the availability of back-up liquidity, the analysis of enterprise can get the cash management, corporate finance to the outside world the ability to sell convertible securities can bring the amount of available liquidity. In the analysis of various sources of financing enterprises, the enterprises should pay particular attention to its lenders are closely related to the ease of borrowing, because once got in trouble, helpless to the outside world, those close to the lending institutions are likely to help businesses get rid of dilemma. Others include convertible securities are convertible at any time from the stock market into cash, to repay short-term corporate debt maturity.3 Determination of M & A transaction priceM & M price is the cost of an important part of the target company's value is determined based on M & A prices, so enterprises in M & Juece O'clock on targeted business Jinxing scientific, objective value of Ping Gu, carefully Xuanze acquisition Duixiang to Shi Zai market competition itself tide in an invincible position. Measure of the value of the target company, generally adjusted book value method, market value of comparative law, price-earnings ratio method, discounted cash flow method, income approach and other methods.1. The book value adjustment method. Net balance sheet shall be the company's book value. However, to assess the true value of the target company must also be on the balance sheet items for the necessary adjustments. On the one hand, on the asset should be based on market prices and the depreciation of fixed assets,business claims in reliability, inventory, marketable securities and changes in intangible assets to adjust. On liabilities subject to detailed presentation of its details for the verification and adjustment. M & A for these items one by one consultations, the two sides, both sides reached an acceptable value of the company. Mainly applied to the simple acquisition of the book value and market value of the deviation from small non-listed companies.2. The market value of comparative law. It is the stock market and the target company's operating performance similar to the recent average trading price, estimated value of the company as a reference, while analysis and comparison of reference of the transaction terms, compared to adjust, according to assessment to determine the value of the target company. However, application of this method requires a fully developed, active trading market. And a subjective factors and more by market factors, the specific use of time should be cautious. Mainly applied to improve the market system in the acquisition of listed companies.3. PE method. It is based on earnings and price-earnings ratio target companies to determine the value of the method. The expression is: target = target enterprise value of the business income × PE. Where PE (price earnings ratio) can choose when the target company's price-earnings ratio M, with the target company's price-earnings ratio of comparable companies or the target company in which the industry average price-earnings ratio. Corporate earnings targets and the target company can choose the after-tax income last year, the last 3 years, the average after-tax income, or ex post the expected after-tax earnings target company as a valuation indicator. This method is easy to understand and easy to apply, but its earnings targets and price-earnings ratio is very subjective determination, therefore, this valuation may bring us a great risk. This method is suitable for the stock market a better market environment, a more stable business enterprise.5. Income approach. It is the company expected future earnings discounted using appropriate discount rate to assess the present value of the base date, and thus determine the value of the company's assessment. Income approach in principle, thatis the reason why the acquirer acquired the target company, taking into account the target company can generate revenue for themselves, if the company's returns, but the purchase price will be high. Therefore, according to the company level can bring benefits to determine the value of the company is scientific and reasonable way. The use of this method must have two conditions: First, assess the company's future earnings are to be predicted, and can predict the basic income guarantee and the possibility of a reasonable amount; second, and enterprises to obtain expected benefits associated with future risk can be invaluable, and can provide convincing evidence. When the purpose is to use M & A target long-term management and enterprise resources, then use the income approach is suitable.Activities in mergers and acquisitions, M & A business through the acquisition of a variety of financing sources of funds needed. M & M financing enterprises in financing before the deal with a variety of M & A comprehensive analysis and evaluation, to select the best financing channels. M & A financing from the actual situation analysis, M & A financing is divided into internal financing and external financing. Internal financing is an enterprise to use their own accumulated profits to pay for acquisitions. However, due to the amount of funds required for mergers and acquisitions are often very large, and limited internal resources, after all, the use of M & A business operating cash flow to finance significant limitations, the internal financing generally not as the main channel for financing mergers and acquisitions. Of external financing is divided into debt financing, equity financing and hybrid financing.Channels of financing the actual response to determine their capital structure analysis, if the acquisition of their funds sufficient, using its own funds is undoubtedly the best choice; if the business debt rate has been high, as far as possible should be financed without an increase to equity of companies debt financing. However, if the business prospects for the future, can also increase the debt financing, in order to ensure all future benefits enjoyed by the existing shareholders.Whether M & A business development and expansion as a means or aninevitable result of market competition, will play an important stage in the socio-economic role. As an important participant in M & A and policy-makers, from the financial rational behavior on M & A analysis and selection of the same time, also taking into account the market, and management elements that will lead the enterprise's decision making provide the most effective Xin Xi .企业并购财务问题分析企业并购已成为企业资本运营的一种主要形式。

财务报表分析中英文对照外文翻译文献编辑

财务报表分析中英文对照外文翻译文献编辑Introduction:Financial statement analysis is an essential tool used by businesses and investors to evaluate the financial performance and position of a company. It involves the examination of financial statements such as the balance sheet, income statement, and cash flow statement to assess the company's profitability, liquidity, solvency, and efficiency. In this document, we will provide a detailed analysis and translation of foreign literature related to financial statement analysis.1. Importance of Financial Statement Analysis:Financial statement analysis provides valuable insights into a company's financial health and helps stakeholders make informed decisions. It enables investors to assess the profitability and growth potential of a company before making investment decisions. Additionally, it helps creditors evaluate the creditworthiness and repayment capacity of a company before extending credit. Furthermore, financial statement analysis assists management in identifying areas of improvement and making strategic decisions to enhance the company's performance.2. Key Elements of Financial Statement Analysis:a) Balance Sheet Analysis:The balance sheet provides a snapshot of a company's financial position at a specific point in time. It presents the company's assets, liabilities, and shareholders' equity. By analyzing the balance sheet, stakeholders can assess the company's liquidity, solvency, and financial stability.b) Income Statement Analysis:The income statement, also known as the profit and loss statement, presents the company's revenues, expenses, and net income over a specific period. It helps stakeholders evaluate the company's profitability, revenue growth, and cost management.c) Cash Flow Statement Analysis:The cash flow statement details the inflows and outflows of cash during a specific period. It provides insights into the company's operating, investing, and financing activities. By analyzing the cash flow statement, stakeholders can assess the company's ability to generate cash, meet its financial obligations, and fund its growth.3. Financial Ratios for Analysis:Financial ratios are essential tools used in financial statement analysis to assess a company's performance and compare it with industry benchmarks. Some commonly used financial ratios include:a) Liquidity Ratios:- Current Ratio: Measures a company's ability to meet short-term obligations.- Quick Ratio: Measures a company's ability to meet short-term obligations without relying on inventory.b) Solvency Ratios:- Debt-to-Equity Ratio: Measures the proportion of debt to equity in a company's capital structure.- Interest Coverage Ratio: Measures a company's ability to meet interest payments on its debt.c) Profitability Ratios:- Gross Profit Margin: Measures the profitability of a company's core operations.- Net Profit Margin: Measures the profitability of a company after all expenses, including taxes.d) Efficiency Ratios:- Inventory Turnover Ratio: Measures how quickly a company sells its inventory.- Accounts Receivable Turnover Ratio: Measures how quickly a company collects cash from its customers.4. Translation of Foreign Literature:In this section, we will provide a translation of key points from foreign literature related to financial statement analysis. The literature emphasizes the importance of accurate financial reporting, the use of financial ratios for analysis, and the interpretation of financial statements to make informed decisions.Conclusion:Financial statement analysis is a crucial process for evaluating a company's financial performance and position. It provides valuable insights into a company's profitability, liquidity, solvency, and efficiency. By analyzing financial statements and using financial ratios, stakeholders can make informed decisions regarding investments, credit extension, and strategic planning. Accurate translation and understanding of foreign literature related to financial statement analysis can further enhance the effectiveness of this process.。

上市公司财务风险文献综述中英文资料外文翻译文献

中英文资料外文翻译文献上市公司财务风险的评价及控制的文献综述中国从资本市场建立开始，上市公司也随之不断地发展，上市的公司从行业、类型到地区、规模都呈现多样化趋势。

中国的上市公司，特别是上市公司中的ST公司，存在着严重的财务风险问题，财务风险比较大，对上市公司的发展会有很大的影响。

因此对上市公司财务风险问题的研究是十分重要的。

通过对这一领域大量文献的研究，从企业财务风险的成因、评价体系及控制三个角度综述，加强分析，以期对上市公司财务风险的理论和实践研究提供借鉴和指导。

（一）国外研究综述西方古典经济学家在十九世纪就已经提出了风险的概念，认为风险是经营活动的副产品，经营者的收入是其在经营活动中承担风险的报酬。

从狭义上看，企业的财务风险是指由于利用负债给企业带来的破产风险或普通股收益发生大幅度变动的风险。

这种观点立足于企业筹资时过多举债或举债不当。

西方国家强调全面风险管理的观念是从资金运动到资本经营整个体系的过程，对财务风险的控制包括风险预警、风险识别、危机处理等内容。

美国经济学家富兰克.H.奈特(Frank H.Knight)在1921年出版的(Risk，Uncertainty and Profit)一书中认为：风险是指“可度量的不确定性”。

而“不确定性”是指不可度量的风险。

风险的特征是概率估计的可靠性，概率估计的可靠性来自所遵循的理论规律或稳定的经验规律。

与可计算或可预见的风险不同，不确定性是指人们缺乏对事件的基本知识，对事件可能的结果知之甚少，因此，不能通过现有理论或经验进行预见和定量分析①。

②Ross, Westerfield, Jordan(1995)在《Fundamentals of Corporate Finance》提到①[美] Frank H.Knight,王宇，王文玉译.《风险、不确定性和利润》[M]．中国人民大学出版社．2005；②此段原文如下：“The debt finacing increases the risks borne by the stockholders. The extra risk that arises from the use of debt finacing is called the financial risk of the firm equity. In other word,financial risk is the equity risk债务筹资会增加股东的风险，使用债务筹资所产生的这部分额外风险称为公司股东的财务风险。

财务分析-财务状况分析(英文版) 精品

Financial Statement AnalysisTo develop techniques for evaluating firms using financial statement analysis for equity and credit analysis.Integrates financial statement analysis with corporate finance, accounting and fundamental analysis.Adopts activist point of view to investing: the market may be inefficient and the statements may not tell all the truth.What Will You Learn From the Course• How statements are generated• The role of financial statements in determining firms’ values• How to pull ap art the financial statements to get at the relevant information• How ratio analysis aids in valuation• The relevance of cash flow and accrual accounting information • How to calculate what the P/E ratio should be ?• How to calculate what the price-to-book ratio ?Need for financial statement analysisGAAP – plexEconomic events about the firm to be reported to the public Relevance vs ReliabilityReporting: Recognition vs Disclosure (where)Users of Firms’ Financial InformationEquity InvestorsInvestment analysisLong term earnings powerManagement performance evaluationAbility to pay dividendRisk – especially marketDebt InvestorsShort term liquidityProbability of defaultLong term asset protectionCovenant violationsUsers of Firms’ Financial InformationManagement: Strategic planning; Investment in operations;Performance EvaluationLitigants - Disputes over value in the firmCustomers - Security of supplyGovernments: Policy making and Regulation– Taxation– Government contractingEmployees: Security and remunerationInvestors and management are the primary users of financial statementsFundamental AnalysisStep 1 - Knowing the Business•The Products; The Knowledge Base•The petition’ The Regulatory ConstraintsStep 2 - Analyzing Information•In Financial Statements•Outside of Financial StatementsStep 3 - Forecasting Payoffs•Measuring Value Added•Forecasting Value AddedStep 4 - Convert Forecasts to a ValuationStep 5 - Trading on the Valuation•Outside Investor: pare Value with Price to; BUY, SELL, or HOLD•Inside Investor: pare Value with Cost to; ACCEPT or REJECT StrategyA valuation model guides the process: Forecasting is at the heart of the process and a valuation model specifies what is to be forecasted (Step 3) and how a forecast is converted to a valuation (Step 4). What is to be forecasted (Step 3) dictates the information is implied?Balance Sheet•Assets (SFAC6): “probable future economic benefits obtained or controlled by a particular entity as a resultof past transaction or events-- no reference to risk (eg, assets sold but in which entityretains a risk)•Liabilities (SFAC6): ‘probable future sacrifice of economic benefits arising from present obligations of a particularentity to transfer assets or provide services to other entities in the future as a result of past transactions or events”-- not always followed (eg, certain leases and, until recently, pension benefits)•Equity (SFAC6): the residual interest in the net assets of an entity that remains after deducting i ts liabilities”-- does not handle situations where a source of capitalhas elements of debt & equity (eg, convertibles)•Classified by liquidityCA : converted to cash or used within 1-year oroperating cycle (if longer)CL: obligations expected to be settled within 1-year oroperating cycle•Tangible A&L reported above intangibles (goodwill, contingent liabilities)Measurement of Assets & Liabilities•Historical Cost, for most ponents of Balance Sheet•May be at market under “lower of cost or market rule”•Reversals of prior write downs allowed for marketable equity securities but not for inventories•Financial service firms (banks, brokerage, insurance) report certain A&L at market•A&L of foreign affiliates reported at end-of-period X-rate or a bination of it and specified historical X-rates •Intangible assets have uncertain and hard to measure benefits and are reported only when acquired via a“purchase method” acquisition-- brand names-- when reported, called Goodwill, Patents, etc.Two Fundamental shortings of the Balance Sheet Elusiveness of valueValue cannot be assigned to all assetsOther Balance Sheet issues: Book Value vs. Market ValueInflation: The correct way to think about inflation is that inflation represents a decline in the value of one good – the currency of denomination (i.e., the U.S. dollar in our case). When the value of the currency declines, prices of all other goods & services rise because those prices are measured in terms of dollarsWeakness of Historical Cost Accounting: it ignores the impact of changes in the purchasing power of the currency. The net impact of not considering inflation is that book value understates the market value.Obsolescence causes book value to overstate market valueHow to Measure Effect of Obsolescencea. Observe difference between market value & book value (after adjustingfor inflation)b. Estimate the value of the asset’s earning power. But this is simply thediscounted cash flow approach & thus it represents circular reasoning.Inflation & ObsolescenceInflation causes book value to understate market valueObsolescence causes book value to overstate market valueThe effect of inflation & obsolescence may not be apparent in an examination of book values because they offset one anotherOrganizational Capitala. The whole is worth more than the sum of the partsb. Returns to Entrepreneurshipc. Difficult to separate from the firm as a going concernd. Can be estimated only by examining the earning power of the panySources of Organizational Capital Valuesa. Long-term relationshipsb. Reputational “brand name” capitalc. Growth optionsd. Network of suppliers and distributorsMore on Organizational Capitala. It is difficult to separate the firm’s organizational capital from the firm as anongoing concernb. The value of a brand name is not reflected in the replacement cost of assetsc. Can only be estimated by examining the earning power of the pany (DCF)Adjustments to Book ValueEstimate Replacement CostEstimate Liquidation ValueDrawbacksDo adjusted book values reflect market values?Adjusted book values do not consider organizational capital Drawbacks of AdjustmentsIt is often difficult to determine if we have made the correct adjustments Adjustments often fail to consider the value of off-balance sheet itemsReplacement CostNo universal agreementCan use price indexCPI, PPI, GDP implicit deflatorIgnores organizational capitalLiquidation ValueSecondary markets do not existAsset specificityContestable marketsIne statementNet SalesCost of Goods SoldGross ProfitSelling & Administrative expensesAdvertisingLease paymentsDepreciation and amortizationRepairs and maintenanceOperating ProfitOther ine (expense)Interest ineInterest expenseEarnings before Ine taxesIne taxesNet earningsStatement of Consolidated Retained Earnings Retained earnings at beginning of yearNet earningsCash DividendsRetained earnings at end of yearIne Statement•Based on Accrual accounting•Based on Matching Principle•Revenues(SFAC6) “inflows of an entity from delivering or producing goods, rendering services, or carrying out otheractivities that constitute the entities ongoing major or centraloperations”•Expenses(SFAC6) “outflows from delivering or producing goods, rendering services, or carrying out other activities thatconstitute the entities ongoing major or central operations”•PREHENSIVE INE CONCEPT“the change in equity from transactions from non-owner sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners”•Gains“Increases in equity from peripheral or incidental transactions of an entity except those that result from revenues or investment by owners.”•Losses“Decreases in equity from p eripheral or incidental transactions of an entity except those that result from revenues or investment by owners.”Revenues+ Other ine and revenues- E xpenses= Ine from CONTINUING OPERATIONS∀Unusual or infrequent events= Pre tax earnings from continuing operations- I ne tax expense= After tax earnings from continuing operations*∀Discontinued operations (net of tax)*∀Extraordinary operations (net of tax)*∀Cumulative effect of accounting changes (net of tax) * = Net Ine ** Per share amounts are reported for each of these items High quality ine statement reflect repeatable ine statement Gain from non-recurring items should be ignoredwhen examining earningsHigh quality earnings result from the use of conservative accounting principles that do not overstate revenues or understate costsLow Quality of Earnings Indicators1.Unstable Ine Statement Elements unrelated to normalbusiness operations2 Earnings that reflect dubious adjustments to estimatedliability accounts3 Earnings that have been determined using liberal accountingpolicies (methods and estimates) because of the resultingoverstatement of net ine. Such overstatement also results in the overstatement of future earnings projections ine based on ultraconservative accounting policiessince the resulting net ine is misleading as a basis forpredicting future earningsWhat to do?pare the pany’s accounting polices to the prevalentaccounting policies in the industry5.Unreliable and inaccurate accounting estimatesWhat to watch for?Prior estimates materially differ from actualexperience, such as where the pany’s assumed interest rate onpension fund assets significantly differs from the actual interestrate earned as reflected by significant actuarial gains and losses.What to do?Restate net ine as if realistic accounting estimates were used.6. Earnings that have been artificially smoothed or managed.What to watch for?a. Revenue reflected earlier or later than the realistic time periodb. Shifting of expense among reporting periodsc. Smoothly rising earnings trendd. Sharp increase or decrease in sales in the last quarter of the yearsas reflected in the 4th quarter ine statemente. Trading of investment securities among affiliated paniesf. Significant modification in estimated liability accounts in the lastquarterg. Writing down a good asset (inventory) and selling it next year toshow higher earningsh. The “big bath”, in which everything is written off in a really badyear so that it will be easier to show good profits in the followingyears. This sometimes occurs when new management takes overand wishes to blame old management for poor profits or whenearnings are already so low that their further reduction my nothave significant impactWhat to do?Look at the functional relationship of sales and net ine over time. An inconsistent relationship may be a manipulatorindicator. Restate earnings by taking out profit increments orreductions due to ine management ploys7.Deferral of costs that do not have future economic benefitWhat to watch fora. Inventory of unsalable items in view of current environment (8track tapes, typewriters, large automobiles during oil shortage)b. Sudden write-offs of inventoryc. Goodwill on the balance sheet but the pany has none (operating atlosses, significant decline in market share, bad publicity)d. Costs that are currently capitalized when in prior years, they wereexpensed (e.g. Tooling costs in inventory)What to doRestate net ine as if the unrealistic deferral had not been made.8. Unjustified Changes in Accounting Principles and EstimatesWhat to watch fora. A firm has a past history of making frequent accounting changesb. Accounting changes that create earnings growthc. The pany fires the auditor and hires another one because of adisagreement over a proposed accounting change.What to doa. Determine whether the accounting change is justified by seeing if itconfirms to requirements in FASB statements, Industry Audit Guides& IRS regulationsb. Ascertain whether the accounting change is preferable, given nature ofbusiness (e.g., decreasing the life of a puter because of newtechnological advances in the industry)c. Does change make sense? (Lowering bad debt expense as % ofaccounts receivable does NOT make sense when customer defaultsare rising)d. If accounting change results in increasing net ine, restate earnings asthey would have been if the old method had been retained.9.Premature or Belated Revenue RecognitionWhat to watch fora. Accruing unbilled salesb. Is there a sufficient provision for future losses in connection withthe recognition of revenue?c. Improper deferral of revenue to a later periodd. Reversal of previously recorded profitsWhat to do- Restate revenue as if proper revenue recognition were made10.Underaccrual or Overaccrual of ExpensesWhat to watch fora. Failure to incur necessary maintenance expendituresb. Inadequate warranty provisionWhat to do- Adjust net ine for difference between expenseprovided & normal expense11.Improper Accounting PoliciesWhat to watch fora. Reduction of expense for overly anticipated recoveries of excesscosts due to modifications in government contractsb. Substantial provision for future costs in present year (e.g.warranties) because firm was remiss in making sufficientprovisions in prior yearsWhat to do-restate earning of years affected so can determineproper earnings trend12.Modification in Loan Agreements Due to FinanciallyWeak BorrowersWhat to watch for - lowering of interest on loanWhat to do - downwardly adjust net ine for inclusion of accrued interest ine on risky loans13.Change in corporate policy for the current year, whichimpacts earnings (e.g., writing insurance renewal contracts in the 4th quarter of the current year rather than the 1stquarter of the next year).14.Unjustified Cutback in Discretionary CostsWhat to watch fora. Declining tend in discretionary costs as a % of net sales or toassets to which they applyb. Vacillation in the ratio of discretionary costs to sales over theyears as this may indicate management of earningsWhat to doa. Determine trend in discretionary costs over time throughuse of index numbersb. Determine ratio of discretionary costs to sales over last 5years. An example is ratio of repairs & maintenance tosales and/or to fixed assets15.Book Ine Substantially Exceeds Taxable IneWhat to watch for - A continual, significant rise in deferred ine tax credit account due to liberal accounting policies16.Residual Ine that is Substantially less than Net IneResidual Ine may be determined by deducting the imputed costof capital (weighted average cost of capital time total assets)from net ine.What to do - Determine ratio over time of residual ine to net ine17. A High Degree of Uncertainty Associated with IneStatement ponentsWhat to watch fora. Firm engaged in long-term activities requiring many estimates inine measurement processb. Significant future loss provisionsc. Estimates have been consistently materially different from actualexperienceWhat to doa. pare o ver time firm’s estimated liability provisions with actuallosses occurring. – e.g., warranty cost sb. Determine what percent of total assets are intangible, which bytheir nature require material estimates to be made18.Unreliably Reported EarningsWhat to watch fora. Poor system of internal control because it infers possibleerrors in reporting systemb. High turnover rate in auditorsc. pany has reputation for managing earnings and/or usingliberal accounting policiesd. Indications of lack of management integrity as evidenced bysuch things as bribesWhat to doa. Determine trend in audit fees over timeb. Examine for disclosure made by pany related to adjustmentsdue to prior years' accounting errorsc. Look at accounting, financial and brokerage researchpublications that note and give examples of panies withquestionable accounting policies.High Quality of Earnings Indicators: Ine Backed up by Cash Ine not involving the Inclusion of amortization costsrelated to questionable assets, such as deferred charges Ine that reflects Economic Reality4.Ine Statements ponents that are Recognized Close to thePoint of Cash Inflow and Cash OutflowPolicies that lower quality of earnings1. reduce expense for expected recovery of excess costs resultingfrom changes in government contract – only collected 65%2. unrealistic decline in percentage of sales allowance to sales3. provision for future costs (warranties) high becauseunderprovided in past4. “Big Bath”5. re-negotiate terms of loan with weak borrower6. transfer from 1 sub to another7. sell securities at a gain and buy them back at higher price- haveto recognize lossHow pany smoothes earnings Check list1Does level discretionary cost conform to past2Is there a drop in trend of discretionary costs as percentage of sales3Does cost cutting program involve significant cut in discretionary costs4Does cost cutting program eliminate fat?5Do discretionary costs show fluctuations relative to sales 6Is there a sizable jump in discretionary costs?Summary checklist of key pointsA. No single “real” net ine figure existsB. The analyst must adjust reported net ine to an earningsfigure that is relative to him/her.C. Earnings quality evaluation is important in investment,credit, audit & management decision making.D. Appraising the quality of earnings requires anexamination of accounting, financial, economic andpolitical factors.E. Earnings quality elements are both quantitative andqualitativeCash flow statement1. SCF (Statement of Cash Flows) adds in situations where Balance Sheetand Ine Statement provide limited insight2. SCF helps identify the categories into which panies fit3. Financial flexibility is a useful weapon to gain a petitive advantageand is best measured by studying the SCFThe key analytical lessonsThe cash flow statement – not the ine statement – provides the best information about a highly leveraged firm’s financial healthThere is no advantage in showing an accounting profit, the main consequence of which is incurring taxes, resulting, in turn, in reduced cash flowsCash Flow and pany Life CycleCash Flow and Start-up paniesLittle or no operating cash flowsLarge cash outflows for investing activitiesLarge need for external financing (mostly from issuing mon stock, issue long term debt)Cash Flows and Emerging Growth paniesSome operating cash flow (not enough to sustain growth)Large cash outflows to expand activitiesRequires cash flows from financingPay back some short-term debt, issue some mon stockCash Flows and Established Growth paniesFund growth from operating cash flowDepreciation is substantialRepayment of long term debt, begin to pay dividendCash Flows and Mature Industry paniesModest capital requirementsDepreciation and amortization is significantNet negative reinvestmentLarge dividend payout, reduction in long term debt Cash Flows and Declining Industry paniesNet cash user (similar to emerging growth)Lower dividends, Slim operating cash flowssell assetsCash Flows and Financial FlexibilitySafety of dividendFinance growth with internal fundsMeet other financial obligationsFinancial Ratios Analysis:Ratios are more informative than raw numbers1. Ratios provide meaningful relationships between individual values inthe financial statements2. Ratios help investors evaluate management3. Enable parison of a firm’s performance toThe aggregate economyIts industry or industriesIts major petitorsIts past performanceRatios and Financial Analysisparability among firms of different sizesProvides a profile of the firmCaution:Economic assumption of Linearity – ProportionalityNonlinearity can cause problems:Fixed costs, EOQ for inventoriesBenchmarks; Is high Current ratio good? For whom?Industry-wide norms.Accounting Methods; Timing & Window DressingLIMITATIONS1. No theory to define ‘good’2. Historical, not economic3. Most as of a single point in time4. Seasonal operations5. One-time effects6. Designed for manufacturersLiquidity Ratios: attempt to measure the ability to pay obligations such as current liabilities and the pool of assets available to cover the obligations. Liquidity is the ability of an asset to be converted to cash quickly at low cost. Converting an asset to cash occurs in one of two ways. Sell the asset, hoping it has reasonable liquidity, or in the case of a financial asset, like accounts receivable or Treasury bill, maturity brings cash. Working capital circulates from inventory to accounts receivable to cash, etc. Accounting value estimates of liquid assets are reasonable estimates of their value.Current assets (the pool of circulating cash assets available to be allocated to pay bills) minus current liabilities (the pool of obligations the business must pay in the near future) is an analytical amount called net working capital (NWC).NWC = current assets - current liabilitiesNWC/total asset ratio = net working capital / total assetsThe current ratio is the classic liquidity ratio, but is merely a variation of the idea above—what pool of circulating assets is available relative to the pool of current obligations:Current ratio = current assets / current liabilitiesQuick ratio =(cash + marketable securities + accounts receivable) /current liabilitiesCash ratio = (cash + marketable securities) / current liabilitiesCash flow from operation ratio = OCF / current liabilitiesLeverage ratios are two types: balance sheet ratios paring leverage capital to total capital or total assets, and coverage ratios which measure the earnings or cash-flow times coverage of fixed cost obligations.Balance sheet ratiosLong-term debt ratio = long-term debt / ( long-term debt + equity)Debt-equity ratio = long-term debt/equityTotal debt ratio = total liabilities / total assetsA coverage ratio, such as the times interest earned ratio, measures an amount available relative to amount owed. How many times is the obligation covered?Times interest earned = EBIT / interest expense= (EAT+Tax+Interest Exp)/ interest expenseTimes Cash flow coverage =(OCF+Tax+Interest Exp)/ interest expenseTotal assets turnover = Sales / Total assetsAccounts Receivable turnover = Sales / AR[Days A/R outstanding = 365 / Accounts Receivable turnover]Inventory turnover = Sales / Average Inventory, orCOGS / Average Inventory[Inventory Conversion = 365 / Inventory turnover]Payable turnover (deferral) = Purchase (or COGS) / AP[Days A/P outstanding = 365 / Payable turnover]Note: Cash Cycle = Inventory Conversion + Days A/R outstanding –Days A/P outstandingProfitability Ratios: refers to some measure of profit relative to revenue or an amount invested.The net profit margin measures the proportion of sales revenue that is profit available for sources of funds (EBIT-tax).Gross profit margin = gross profit / salesOperating profit margin = EBIT / salesNet profit margin = net ine / salesReturn on assets = (net ine + interest )/ average total assetsReturn on equity = net ine/ average equityPayout ratio = dividends / net earningsPlowback ratio = 1 - payout ratio= (earnings – dividends)/(net earnings) = (earnings retained in period)/( net earnings)Growth in equity = plowback ratio x ROEMarket Based Ratios•For pricing an IPO if business going public•P/E RatioWhat investors are willing to pay for a $ of earnings (Current/ Forecast)What creates a high P/E?•Market/BookUsually much different than 1.•Price/Cash FlowThe Du Pont System is a process of analyzing ponent ratios, (also called deposition) of the ROA and ROE to explain their level or changesRatio Pr 1 Leverage Turnover Asset y ofitabilit Equity Debt ROA EquityTA TA Sales Sales NI EquityTA TA NI Equity NI ROE ⨯⨯=⎪⎪⎭⎫ ⎝⎛+⨯=⨯⨯=⨯==Industry analysis:Definition of an industry: the group of firms producing products that are close substitutes for each other.Forces driving industry petition: There are five forces in determining the petitive structure of an industry, they are: (1)Entry, (2)Threats of substitutions, (3)bargaining power of buyers, (4)Bargaining power of suppliers, and (5)rivalry among current petitors, and can be pictured as:Five forces model:Potential EntrantsThreats of new entrants(Suppliers) (Buyers )0 bargaining power Industry petitors bargaining powerRivalry among existing firmsThreats of substitutesSubstitutesThreats of entry: new entrants bring to an industry new capacity, the desire to gain market share, and often substantial resources. Price can bid down or incumbent’s costs inflated as a result, reducing profitability.Barriers to entry:A. Economics of scales deter entry by forcing the entrants to e in at alarge scale and risk strong reaction from existing firms or e in at asmall scale and accept a cost disadvantage.B. Product differentiation: product differentiation means that establishedfirms have brand identification and customer loyalties. Differentiation creates a barrier to entry by forcing entrants to spend heavily to overe existing customer loyalties.C. Capital requirement: the need to invest large financial resources inorder to pete creates a barrier to entry, particularly if the capital is required for risky or unrecoverable up-front advertising or R&D.Capital requirement maybe also needed for customer credit, inventory start-up cost, as well as production cost.D. Switching costs: A barrier to entry is created by the switching cost,that is, one-time cost facing the buyer of switching from one supplier’s product to another’s.E. Access to distribution channels: the more limited the wholesale orretail channels for a product are and the more existing petitors have these tied up, obviously the tougher entry into the industry.F. Cost disadvantages independent of scale: proprietary producttechnology, favorable access to raw materials, favorable locations,government subsidy, and learning or experience curve.G. Government policy:Expected retaliation: conditions that signal the strong likelihood of retaliation to entry and hence to deter it are the following:A. A history of vigorous retaliation to entrants.B. Established firms with substantial resources to fight back.C. Established firms with great mitments to the industry andhighly illiquid assets employed in it.D. slow industry growth, which limits the ability of the industryto absorb a new firm without depressing the sales andfinancial performance of established firms.。

企业财务风险管理外文文献翻译

文献出处：Błach J. Financial Risk Identification Based on the Balance Sheet Information[J]. Managing and Modelling of Financial Risks, 2016,1: 10-19.第一部分为译文，第二部分为原文。

默认格式：中文五号宋体，英文五号Times New Roma，行间距1.5倍。

基于资产负债表信息的财务风险识别摘要：现代经济风险暴露不断增加，所有企业都要承担不同类型的风险。

本文研究财务风险的定义，组成部分，因素和后果，以及通过资产负债表提供的信息的使用来识别和分析财务风险。

此外，还介绍了这种财务风险评估方法的优缺点，以100个最大波兰公司10年（2000-2009年）的汇总数据为例，测试了根据资产负债表信息确定财务风险的潜力。

关键词：财务风险，财务分析，风险评估，资产负债表。

1. 引言现代社会往往被描述为“风险社会”，这意味着社会的财富生产伴随着社会风险生产。

因此，在这种环境下经营的企业，被迫采取不同类型的风险识别，以发展自己，提高效率。

考虑到不同类型的标准，有各种各样的企业风险进行分析和分类。

企业风险最重要的类型之一是财务风险。

2.财务风险定义及其组成部分文献中没有统一的财务风险定义。

但问题始于风险的一般定义。

在理论上，提出了风险定义的两个概念。

第一个-负面概念将风险描述为潜在损失的威胁。

第二个-中立概念表明，风险不仅是威胁，也是机会，所以风险意味着获得不同于预期的结果的可能性。

因此，风险的定义主要取决于风险的方法，并且可能导致管理者采取的不同行动。

如果采取负面做法，管理人员的主要目标是尽可能减少潜在的损失，并设法避免危险行为，以稳定公司的情况。

在第二种情况下，经理们不仅要尽量减少损失，还要尽量利用承担风险，改善公司状况。

因此，可以从中性或消极的角度分析任何类型的风险的金融风险。

(完整word版)财务报表分析外文文献及翻译

Review of accounting studies,2003,16（8)：531—560 Financial Statement Analysis of Leverage and How It Informs About Protability and Price-to-Book RatiosDoron Nissim，Stephen。

PenmanAbstractThis paper presents a ﬁnancial statement analysis that distinguishes leverage that arises in ﬁnancing activities from leverage that arises in operations. The analysis yields two leveraging equations，one for borrowing to ﬁnance operations and one for borrowing in the course of operations。

These leveraging equations describe how the two types of leverage affect book rates of return on equity。

An empirical analysis shows that the ﬁnancial statement analysis explains cross-sectional differences in current and future rates of return as well as price-to—book ratios, which are based on expected rates of return on equity。

The paper therefore concludes that balance sheet line items for operating liabilities are priced differently than those dealing with ﬁnancing liabilities。

财务战略管理外文翻译文献

财务战略管理外文翻译文献外文文献原文及译文财务战略管理外文翻译文献(文档含中英文对照即英文原文和中文翻译)Small and medium-sized enterprise financial strategy choice indifferentFinancial strategic management of the significance of the development of small and medium-sized enterprises, this paper expounds the development of enterprise needs not only scientific, fine daily management, need more forward-looking strategic vision and strategic thinking;Through the analysis of the financial characteristics of small and medium-sized enterprises (smes) in different development period, discusses the enterprise should be how to choose matching financial strategy problems, for the enterprise bigger and stronger, sustainable development, provides a feasible way of thinking.With the establishment of the modern enterprise system and market economic system reform deepening, the business activities of enterprises both contain the great vitality, also lies the great crisis.Small and medium-sized enterprises how to adapt to the environment, and maintain competitive advantage not only need to strengthen the daily management of science, fine, more need to have a forward-looking strategic thought, especially the financial and strategic thinking.Enterprise financial strategy, need to consider the enterprise external environment and internal conditions, and many other factors.Due to the small and medium-sized enterprise its own characteristics, in financial strategy can't be consistent with the practice of large enterprise,it must has its own way.Seek financial strategy for the development of small and medium-sized enterprises, make the small and medium-sized enterprise to do strongly does, sustainable development, has important practical significance for the enterprise.First, the significance of small and medium-sized enterprise financial strategy managementModern enterprise financial faces a diverse, dynamic and complicated management environment, enterprise financial management is no longer a specific methods and means of financial management, but absorbs the principle and method of strategic management, from the perspective of to adapt to the environment, use conditions, pay attention to the long-term problem of financial and strategic issues.In the small and 外文文献原文及译文medium-sized enterprises under the condition of relative lack of resources, to develop a suitable financial strategy, and at a reasonable allocation of scarce resources is particularly important.Enterprise financial strategic focus is the development direction of the future financial activities, goals, as well as a basic approach to achieve the goal and strategy, this is a financial strategy is different from other features of various kinds of strategy.Enterprise financial strategy is the overall goal of assemble, configuration, and use resources rationally, to seek balanced and effective flow of enterprise funds, build enterprise core competitive power, finally realizes the enterprise value maximization.The several aspects of the goal is connected with each other.In the long term performance for, seek the sustainable growth of enterprise financial resources and ability, to realize theenterprise capital appreciation, and make the enterprise financial ability sustainable, rapid and healthy growth, maintain and develop the enterprise the competitive advantage.Strategic management in building enterprise core competitive power, need the support of enterprise financial management.Enterprise capital management as the important content of financial management must reflect the requirements of enterprise strategy, ensure the implementation of the strategy of its.Implement the strategy of enterprise financial management value is that it can maintain a healthy enterprise financial situation, to effectively control the financial risk of the enterprise.Second, the small and medium-sized enterprise financial characteristics analysisSuccessful financial strategy must be adapted to the enterprise financial characteristics, the development stage of conform to the enterprise overall strategy and the current and the benefits of stakeholders, the associated risks.Roughly divided into enterprise's development stage, initial, maturation and decline stages.Small and medium-sized enterprises in different stages of development presents the financial characteristics are different and should be based on the analysis of characteristics of its financial seek suitable for different development period of the small and medium-sized enterprise financial strategy.1)the initial financial characteristicsThe management risk of the enterprise life cycle of the initial stage is the highest, thisis because the products on the market soon, a single product structure, the scale of production limited, the product cost is higher, profitability is very poor, also need to invest a lot of money for the new product development and marketdevelopment, and product market whether to expand the product should be enough space for the development of is uncertain and compensation costs, core competence has not yet formed.To small businesses from the impact of the financial management activities of enterprises cash flow, operating activities and investment activities belong to the state of outflows greater than inflows, shortage of funds, cash flows is negative, it is difficult to form internal capital accumulation, financing activities is the only source of cash.This is the initial financial characteristics of the enterprise.2)mature financial characteristicsIn the beginning of small business success across, they will enter a relatively stable mature stage.In the process of enterprise tend to mature, the enterprise growth and prospect than as well as the management risk will fall;Enterprises have the product of the stability of the relatively high market share and account back continuously, has the high efficiency of capital turnover;At the same time, due to the new project, cash flow, less business net cash flow is positive, the enterprise the management activities and investment activities generally characterized by net income.Financing scale than the initial decline, and at this stage is given priority to with retained earnings and debt financing policy, a lot of debt servicing period, along with the increase of debt financing, rise to financial risk and operational risk equivalent.Dividend proportion also have improved, high cash per share net profit ratio make the dividend payment rate and payments will improve, investors return at this time more is through the dividend distribution rather than the start-up phase of the capital gains to meet.3)the recession financial characteristicsFor recession enterprises, reduce business and product death is inevitable, and the opportunity for profitable investment is very small, the purpose of business is the turning point in order to continue to make a living.To small business financial management activities of enterprises from the impact of cash flow, because the enterprise product sales decline, slow cash flow, business activities have obvious negative cash flow.At the same time, as companies in recession more to take high dividend distribution policy, debt financing in the process of decline will increase, and外文文献原文及译文financing activities generate positive cash flow, financial leverage and financial risk increases.Three, different development period of the financial strategy choiceThe choice of financial strategy decision of small and medium-sized enterprise financial orientation and pattern of resource distribution, affects the behavior of enterprise financing activity and efficiency.From the perspective of life cycle theory, the development of small and medium-sized enterprises generally to undergo early stage, mature stage and decline stages.Small and medium-sized enterprise's financial strategy will vary at different stages of development, only select and match the different developmental stages of the enterprise's financial strategy, in order to promote the small and medium-sized enterprises bigger and stronger, sustainable development.1)leading the financial and strategic choiceFinancing strategy is an integral part of the corporate financial strategy, it is the enterprise to raise funds to solve the main goal, principle, direction, scale, structure, major issues suchas channels and means, it is not a specific fund-raising plan, but in order to meet the future environment and the requirements of enterprise strategy, to the enterprise financing, and the idea of the system for a long time, enterprise strategy implementation and enhance the competitiveness of enterprise is dedicated to provide you with reliable cash flow support.In terms of external financing, small and medium-sized enterprises have difficulty in direct financing is a worldwide phenomenon.Objectively, to the extent of direct financing for smes, determined by the small and medium-sized enterprise its own problems.If it is difficult to find eligible collateral or guarantee units, commercial Banks to small and medium-sized enterprise is hard to track supervision and inspection.Most small and medium-sized enterprises small scale, the risk is big, once insolvency bankruptcy, commercial Banks and so on, the security of the creditor's rights will be these are the important factors that affect sme loans.Endogenous financing strategy refers to an enterprise that mainly from internal financing source of financing.Under the guidance of strategic thinking in the financing, the enterprise is not dependent on external funding, and raise the needed capital, and in this unit interior longitudinal accumulation of capital through retained profits before it.The main source of funds will be retained earnings, amortization, etc without having to pay cash, capital takes up less, savings brought by the revolving speed and so on.Type endogenous financing strategy is especially suitable for the lack of external financing channels of small and medium-sized enterprises.From the perspective of tax analysis, debt financing can bring tax benefits for enterprises.But since most startups accounting only produce loss, debt financingcan bring positive influence for the enterprise, and at present because our country small and medium-sized enterprises in the internal financing is relatively easy to some, lower the cost of financing, so should choose mainly endogenous financing, external financing is complementary financing strategy, provided by the owners and affiliated enterprise loan, at the same time to strengthen its own capital reserves, creating certain credit conditions, with their own assets as collateral, borrowing from financial institutions make the enterprise keep good capital structure.Enterprises should choose according to future solvency acceptable way of financing, prevent enterprises from the initial stage back heavy debt burden and was in financial crisis.Investment strategy is based on enterprise internal and external environment condition and its change trend, the enterprise has or the actual control of economic resources effectively put out, in order to obtain economic benefits and competitive advantage in the future.The content of investment strategy of investment direction, the determination of investment scale and proportion.Content must be combined with the specific investment enterprise overall strategy and investment environment, enterprise development stage to set.In the implementation of the investment strategy, managers should pay more attention to growth, leading technology and market share targets.At the start-up stage and growth stage of medium and small enterprises,They need a lot of money to develop new products, expand the market and expand business.Because it difficult to get loans from the outside, so the owners of the small and medium-sized enterprises (smes) are generally the after-tax profits retained in the enterprise, as far as possible use of cash dividend policy, keep more profits, to enrich the capital.2)mature small and medium-sized enterprise financial strategy choiceFor mature type of small and medium-sized enterprises, in order to obtain sufficient funds or stable sources of funds and excellent capital structure, usually adopt the combination of a variety of financing methods for financing.Financing strategy 外文文献原文及译文combinations can achieve better effect, such as financing, revitalize the memory through the financial assets financing, financing and depreciation enterprise commercial credit financing, etc.Type financial financing strategy refers to the enterprises with financial institutions to establish close cooperation relations, use of these financial institutions long-term stable credit the funds to reach the purpose of financing the financing strategy.Financial funding sources including policy Banks, commercial Banks and non-bank financial institutions credit financing lease, leasing company.Its advantage is financing large-scale, flexible form, enterprises need to pay interest charge, does not involve the use of equity.Type financial financing both bring to enterprise financial leverage effect, and can prevent the dilution of return on net assets and earnings per share, so in the meantime, small and medium-sized enterprises should be in order to improve the effect of financial leverage as a starting point, take active financing strategies, appropriately increase the proportion of debt.The deficiency of this form of financing is financing conditions and high cost, applicable to the product markets mature, is developing rapidly and has substantial advantages, especially small and medium-sized enterprises with technical advantage, is the premise of its financing is expected to borrow funds capital profit margin is higher than interest rates.In addition to this, mature type of small and medium-sized enterprises should also be effective to the implementation of the internal financing strategy, optimize the enterprise internal stock fund adjustment, the enterprise stock assets.Mature enterprises already have depreciation financing conditions, should play the advantages of depreciation financing.Depreciation financing possesses the advantages of low cost, low risk, through the depreciation financing to optimize financing /doc/f43449150.html,panies can also make full use of the commercial credit financing.Between enterprises credit financing, including accounts payable, notes payable, advance payment, etc.Credit financing for small and medium-sized enterprises limited liquidity is more special significance, it is the effective way to solve the enterprise capital especially the lack of liquidity.According to the characteristics of the small and medium-sized enterprises mature financial enterprises gradually rise in profits and stable at the same time, maintain production cost is reduced, which makes the enterprise capital at the beginning of the mature found some surplus.This stage of the small and medium-sized enterprises with profit maximization as the financial management goal, usually by taking scaleexpansion, development of diversification and find new ways to invest profit opportunities.Suitable for mature with the situation of small and medium-sized enterprises investment strategy includes scale expansion strategy and stable investment strategy.The expansion of scale expansion mainly refers to the core product sales.Expansion investment strategy is the mature period of small and medium-sized enterprises one of the most commonly used investment strategy, is small and medium-sizedenterprises achieve high growth of the most direct, the most effective way.The main means to realize scale expansion of market penetration, development strategy and product development strategy.After entering the mature stage of small and medium-sized enterprises, can produce a stronger intention and the growth of their own lack of various conditions, and ability of its internal contradiction, therefore, should hold more prudent attitude in financial aspects, blind expansion of avoid by all means.Summary of small and medium-sized enterprises in the reasons for failure in the process of seeking development, finance unsound accounts for large proportion.When companies have some occupy the market of products, with the possible longer profitable accumulation, often not very attention to working capital turnover, but for the past business on success, a large amount of working capital will be used for investment in fixed assets, it will lead to new tensions on the turnover of working capital.There is in order to avoid a single product, is trying to spread risk through diversification and the diversification operation, however due to the small and medium-sized enterprises generally smaller overall capital, diversification is very easy to cause the original items of working capital turnover difficult, and the new investment projects and could not form a certain scale, management ability and management experience, combined with the lack of necessary beyond to establish competitive advantage, enhancing the management risk.Different enterprises in the investment operation of the project will have different requirements, the expansion of investment strategy and stable investment strategy selection, small and medium-sized enterprise must look at the businessconditions and environment, to choose the appropriate investment strategy.Enterprises in the investment management aspects, therefore, should be to put money to be able to take advantage of the enterprise market of the products, and constantly update technical renovation, equipment, expand production scale, improve product yield and quality, to 外文文献原文及译文increase economies of scale, improve market share.At this stage, the enterprise should be scientific, reasonable choice of the mode of investment, strengthen the investment project feasibility study and argument, to strengthen the evaluation of project investment and summarizes the work.3)recession type of small and medium-sized enterprise financial strategy choiceRecession type is an important feature of small and medium-sized enterprise financing structure is highly leveraged, the most important is the compression ratio of debt financing, to avoid the risk of financial leverage.In the case of high financial risk management, often adopt defensive deflating financial strategy.Defense deflating financial strategy is to prevent financial crisis and survive, and the new development for the purpose of a financial strategy.Defense deflating financial strategy, general will minimize cash outflows and as far as possible to increase cash inflows as a top priority.In financial financing decision, should be given priority to with the use of short-term funds, as far as possible avoid the use of long-term funds, take on endogenous financing including profit retained accumulation, owner, shareholder investment and borrowing to owner, partners and shareholders of endogenous debt financing is given priority to, an application for a patent for divestitures,relies on external financing of the financing way.When enterprise sales began to decline, high fixed costs can make the enterprise into serious losses, but by signing a short-term contract or completely based on the variable cost, thus reduce fixed costs ratio lower the total cost.When many factors shows that the enterprise is in decline, can choose to some non-critical product or technology transfer, to abandon the development investment in a particular field, reduce the money for the old products, the accumulation of capital, to find new investment opportunities.To sum up, small and medium-sized enterprises (smes) on the sustainable development road, must choose to match with different stages of development of financial strategy, it can make up for the congenital defects existing in the financial, improving the capacity of sustainable development, it is the key to the small and medium-sized enterprises bigger and stronger.The arrangement of the small and medium-sized enterprises in the financial strategy, we should pay attention to keep a good capital structure, attach importance to connotation development, sound financial management, avoid blind investment and diversification, should be saving money andtimely realize scale expa。

财务报表分析外文文献及翻译

财务报表分析外文文献及翻译LNTU---Acc附录A财务报表分析的杠杆左右以及如何体现盈利性和值比率摘要关键词:财政杠杆;运营债务杠杆;股本回报率;值比率传统观点认为，杠杆效应是从金融活动中产生的:公司通过借贷来增加运营的资金。

杠杆作用的衡量标准是负债总额与股东权益。

然而，一些负债——如银行贷款和发行的债券，是由于资金筹措，其他一些负债——如贸易应付账款，预收收入和退休金负债，是由于在运营过程中与供应商的贸易，与顾客和雇佣者在结算过程中产生的负债。

融资负债通常交易运作良好的资本市场其中的发行者是随行就市的商人。

与此相反，在运营中公司能够实现高增值。

因为业务涉及的是与资本市场相比，不太完善的贸易的输入和输出的市场。

因此，考虑到股票估值，运营负债和融资负债的区别的产生有一些先验的原因。

我们研究在资产负债表上，运营负债中的一美元是否与融资中的一美元等值这个问题。

因为运营负债和融资负债是股票价值的组成部分，这个问题就相当于问是否股价与账面价值比率是否取决于账面净值的组成。

价格与账面比率是由预期回报率的账面价值决定的。

所以，如果部分的账面价值要求不同的溢价，他们必须显示出不同的账面价值的预期回报率。

因此，标准的财务报表分析的能够区分股东从运营中和借贷的融资业务中产生的利润。

因此，资产回报有别于股本回报率，这种差异是由于杠杆作用。

然而，在标准的分析中，经营负债不区别于融资负债。

因此，为了制定用于实证分析的规范，我们的研究结果是用于愿意分析预期公司的收益和账面收益率。

这些预测和估值依赖于负债的组成。

这篇文章结构如下。

第一部分概述并指出了了能够判别两种杠杆作用类型，连接杠杆作用和盈利的财务报表分析第二节将杠杆作用，股票价值和价格与账面比率联系在一起。

第三节中进行实证分析，第四节进行了概述与结论。

1 杠杆作用的财务报表分析以下财务报表分析将融资债务和运营债务对股东权益的影响区别开。

这个分析从实证的详细分析中得出了精确的杠杆效应等式普通股产权资本收益率=综合所得?普通股本(1) 杠杆影响到这个盈利等式的分子和分母。

swot财务分析案例范文

swot财务分析案例范文English Response:SWOT Financial Analysis Case Study.Introduction:In conducting a SWOT financial analysis, we aim to assess the strengths, weaknesses, opportunities, andthreats faced by a company in its financial operations. This analysis provides valuable insights into areas of improvement and potential risks for the company's financial health.Strengths (S):One of the key strengths of the company lies in its robust revenue growth over the past few years. For example, the company has consistently achieved double-digit revenue growth, outperforming its competitors in the industry. Thisindicates strong market demand for its products/services and effective sales strategies in place.Another strength is the company's healthy profit margins compared to industry standards. By maintaining efficient cost management practices and optimizing operational processes, the company has been able to sustain profitability even during economic downturns.Weaknesses (W):On the flip side, a notable weakness is the company's high dependency on a single supplier for critical raw materials. This dependency exposes the company to supply chain risks, such as disruptions in the event of supplier issues or geopolitical tensions affecting the sourcing of raw materials.Additionally, the company's high debt-to-equity ratio poses a significant financial risk, especially in times of economic instability or rising interest rates. This indicates a potential strain on the company's cash flow andability to meet debt obligations.Opportunities (O):There are several opportunities for the company to capitalize on, such as expanding into new geographic markets or diversifying its product/service offerings. For instance, by leveraging its strong brand reputation and loyal customer base, the company can explore entering emerging markets with high growth potential.Furthermore, advancements in technology present opportunities for the company to enhance operational efficiency and streamline processes. By investing in automation and digital transformation initiatives, the company can reduce costs, improve productivity, and gain a competitive edge in the market.Threats (T):One of the significant threats facing the company is intense competition from both traditional players and newentrants in the market. This competition puts pressure on pricing and market share, potentially impacting the company's profitability and growth prospects.Moreover, regulatory changes and compliance requirements pose regulatory risks for the company, especially in highly regulated industries such as healthcare or finance. Non-compliance with regulations can lead to fines, legal actions, and damage to the company's reputation.Conclusion:In conclusion, conducting a SWOT financial analysis enables us to identify the internal strengths and weaknesses of the company, as well as external opportunities and threats in the market landscape. By leveraging strengths, addressing weaknesses, seizing opportunities, and mitigating threats, the company can enhance its financial performance and sustain long-term success.中文回答：SWOT财务分析案例研究。

完整版企业并购财务问题分析外文文献及翻译

M & Financial Analysiscapitalform of become acquisitions have a major Corporate mergers andoperation. Enterprise use of this mode of operation to achieve the capital cost of the synergies, to obtain production and capital concentration external expansion ofA M & very important role. enhancing competitiveness, spread business plays a process involves a lot of financial problems and solve financial problems is the key to the of in merger analysis and successful mergers acquisitions. Therefore, it appears important an Finance has of improve the efficiency M & financial problems to practical significance.A financial effect resulting from mergers and acquisitions1. Saving transaction costs. M & A market is essentially an alternative organization to realize the internalization of external transactions, as appropriate under the terms of trade, business organizations, the cost may be lower than in the market for the same transaction costs, thereby reducing production and operation the transaction costs.2. To reduce agency costs. When the business separation of ownership and management, because the interests of corporate management and business owners which resulted in inconsistencies in agency costs, including all contract costs with the agent, the agent monitoring and control costs. Through acquisitions or agency competition, the incumbent managers of target companies will be replaced, which can effectively reduce the agency costs.3. Lower financing costs. Through mergers and acquisitions, can expand thesize of the business, resulting in a common security role. In general, large companies easier access to capital markets, large quantities they can issue shares or bonds. As the issue of quantity, relatively speaking, stocks or bonds cost will be reduced to enable enterprises to lower capital cost, refinancing.4. To obtain tax benefits. M & A business process can make use of deferredtax in terms of a reasonable tax avoidance, but the current loss of business as a profit potential acquisition target, especially when the acquiring company is highly profitable, can give full play to complementary acquisitions both tax advantage. Since dividend income, interest income, operating income and capital gains tax rate difference between the large mergers and acquisitions take appropriate ways to achieve a reasonable financial deal with the effect of tax avoidance.5. To increase business value. M & A movement through effective controlof profitable enterprises and increase business value. The desire to control access to the right of the main business by trading access to the other rights owned by the control subjects to re-distribution of social resources. Effective control over enterprises in the operation of the market conditions, for most over who are in competition for control of its motives is to seek the company's market value and the effective management of the condition should be the difference between the marketvalue.Second, the financial evaluation of M & ABefore merger, M & A business goal must be to evaluate the financialsituation of enterprises, in order to provide reliable financial basis fordecision-making. Evaluate the enterprise's financial situation, not only in the past few years, a careful analysis of financial reporting information, but also on the acquired within the next five years or more years of cash flow and assets, liabilities, forecast.1. The company liquidity and solvency position is to maintain the basicconditions for good financial flexibility. Company's financial flexibility is important, it mainly refers to the enterprises to maintain a good liquidity for timely repayment of debt. Good cash flow performance in a good income-generating capacity and funding from the capital market capacity, but also the company's overall Profitability, Profitability is the size of which can be company's overall business conditions and competition prospects come to embody. Specific assessment, the fixed costs to predict the total expenditures and cash flow trends, the fixed costs and discretionary spending is divided into some parts of constraints, in order to accurately estimate the company's working capital demand in the near future, on the accounts receivable turnover and inventory turnover rate of the data to be reviewed, should include other factors that affect financial flexibility, such as short-term corporate debt levels, capital structure, the higher the interest rate of Zhaiwu relatively specific weight.2. Examine the financial situation of enterprises also have to assess thepotential for back-up liquidity. When the capital market funding constraints, poor corporate liquidity, the liquidity of the capital assessment should focus on the study of the availability of back-up liquidity, the analysis of enterprise can get the cash management, corporate finance to the outside world the ability to sell convertible securities can bring the amount of available liquidity. In the analysis of various sources of financing enterprises, the enterprises should pay particular attention to its lenders are closely related to the ease of borrowing, because once got in trouble, helpless to the outside world, those close to the lending institutions are likely to help businesses get rid of dilemma. Others include convertible securities are convertible at any time from the stock market into cash, to repay short-term corporate debt maturity.3 Determination of M & A transaction priceM & M price is the cost of an important part of the target company's valueis determined based on M & A prices, so enterprises in M & Juece O'clock on targeted business Jinxing scientific, objective value of Ping Gu, carefully Xuanze acquisition Duixiang to Shi Zai market competition itself tide in an invincible position. Measure of the value of the target company, generally adjusted book value method, market value of comparative law, price-earnings ratio method, discounted cash flow method, income approach and other methods.1. The book value adjustment method. Net balance sheet shall be thecompany's book value. However, to assess the true value of the target company must also be on the balance sheet items for the necessary adjustments. On the one hand, on assets,fixed of depreciation the and prices market on based be should asset thebusiness claims in reliability, inventory, marketable securities and changes in intangible assets to adjust. On liabilities subject to detailed presentation of its details for the verification and adjustment. M & A for these items one by one consultations, the two sides, both sides reached an acceptable value of the company. Mainly applied to the simple acquisition of the book value and market value of the deviation from small non-listed companies.2. The market value of comparative law. It is the stock market and the target company's operating performance similar to the recent average trading price, estimated value of the company as a reference, while analysis and comparison of reference of the transaction terms, compared to adjust, according to assessment to determine the value of the target company. However, application of this method requires a fully developed, active trading market. And a subjective factors and more by market factors, the specific use of time should be cautious. Mainly applied to improve the market system in the acquisition of listed companies.3. PE method. It is based on earnings and price-earnings ratio target companies to determine the value of the method. The expression is: target = target enterprise value of the business income ×PE. Where PE (price earnings ratio) can choose when the target company's price-earnings ratio M, with the target company's price-earnings ratio of comparable companies or the target company in which the industry average price-earnings ratio. Corporate earnings targets and the target company can choose the after-tax income last year, the last 3 years, the average after-tax income, or ex post the expected after-tax earnings target company as a valuation indicator. This method is easy to understand and easy to apply, but its earnings targets and price-earnings ratio is very subjective determination, therefore, this valuation may bring us a great risk. This method is suitable for the stock market a better market environment, a more stable business enterprise.5. Income approach. It is the company expected future earnings discountedusing appropriate discount rate to assess the present value of the base date, and thus determine the value of the company's assessment. Income approach in principle, that is the reason why the acquirer acquired the target company, taking into account the target company can generate revenue for themselves, if the company's returns, but the purchase price will be high. Therefore, according to the company level can bring benefits to determine the value of the company is scientific and reasonable way. The use of this method must have two conditions: First, assess the company's future earnings are to be predicted, and can predict the basic income guarantee and the possibility of a reasonable amount; second, and enterprises to obtain expected benefits associated with future risk can be invaluable, and can provide convincing evidence. When the purpose is to use M & A target long-term management and enterprise resources, then use the income approach is suitable.Activities in mergers and acquisitions, M & A business through theacquisition of a variety of financing sources of funds needed. M & M financing enterprises in financing before the deal with a variety of M & A comprehensive analysis and evaluation, to select the best financing channels. M & A financing from the actual situation analysis, M & A financing is divided into internal financing andexternal financing. Internal financing is an enterprise to use their own accumulated profits to pay for acquisitions. However, due to the amount of funds required for mergers and acquisitions are often very large, and limited internal resources, after all, the use of M & A business operating cash flow to finance significant limitations, the internal financing generally not as the main channel for financing mergers and acquisitions. Of external financing is divided into debt financing, equity financing and hybrid financing.Channels of financing the actual response to determine their capitalstructure analysis, if the acquisition of their funds sufficient, using its own funds is undoubtedly the best choice; if the business debt rate has been high, as far as possible should be financed without an increase to equity of companies debt financing. However, if the business prospects for the future, can also increase the debt financing, in order to ensure all future benefits enjoyed by the existing shareholders.anor means a as expansion and development business A & M Whetherinevitable result of market competition, will play an important stage in thesocio-economic role. As an important participant in M & A and policy-makers, from the financial rational behavior on M & A analysis and selection of the same time, also taking into account the market, and management elements that will lead the enterprise's decision making provide the most effective Xin Xi .企业并购财务问题分析企业并购已成为企业资本运营的一种主要形式。

公司治理和财务困境外文翻译文献

公司治理和财务困境外文翻译文献(文档含中英文对照即英文原文和中文翻译)公司治理和财务困境——实证材料来自中国上市公司摘要：我们调查了在中国经济转型的背景下，公司治理的特点和财务困境风险之间的关系中。

抽样了96家财务困难的公司和96家财务状况健康的公司，我们发现，大股东的所有权，国有制，和独立董事的比重是财务困境发生的概率呈负相关的关系。

此外，管理代理成本是极不利于公司财务状况的。

不过，一定程度的平衡所有权，管理层持股，董事会规模，首席执行官兼任董事长的职务重叠对这种财务困境的发生并没有太大影响。

此外，我们还测试了从国有企业重组到国有和非国有所有制控股企业的影响。

结果表明，公司治理结构不同对这两种形式的公司财务危机状况的影响也不同了。

自20世纪80年代起，公司治理已成为财务困境研究的实证课题。

以往的研究中验证公司治理和公司失败的关系。

Chaganti, Mahajan,和Sharma (1985)调查了21家匹配对零售公司。

结果表明，董事会比较大的企业更不容易失败。

Daily and和Dalton (1994a)研究了五十家破产企业，发现首席执行官职务兼任董事长和较低的董事会独立性与高企业破产率有关系。

米勒和巴克（ 1997 ）用抽样的33匹配的美国公司研究报告说，公司首席执行官兼任董事长和外部人员百分比与周转率成正相关。

辛普森和格里森（ 1999 ）调查287家银行，他们的调查结果显示，首席执行官兼任董事长与较低的财务困境可能性相关。

elloumi和gueyie （ 2001 ）研究了46家财务状况正常和46家财务困难的加拿大公司，发现该外部董事和股东的比例与财务困境的发生呈负相关。

他们的研究结果还显示，公司外部董事所有权对财政窘迫的概率有负面影响，但外部董事的董事职位，对它有积极的影响。

帕克和霍华德（ 2002 ）调查了公司治理对企业财务困窘的影响，他们的研究结果表明，那些股东及内部人员持股较高的财务困难企业较容易生存，并且公司总裁的轮换对财务困境公司的生存率有负影响。

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An Application of Support Vector Machine toCompani’s Financial Distress PredictionBecause of the importance of companies financial distress prediction, this paper applies support vector machine(SVM)to the early-warning distress. Taking listed companies three-year data before special treatment(ST)as sample data, adopting cross-validation and grid-search technique to find SVM model’s good parameters, an empirical study is carried out. By comparing the experiment result of SVM with Fisher analysis, Logistic regression and back propagation neural networks, it is concluded that financial distress early-warning model based on SVM obtains a better balance among fitting ability, generalization ability and model stability than the other models.Stockholders and other interest parts suffer individual economic loss, but also if many enterprises run into bankruptcy the economic development of the whole country will be greatly shocked. In general, most enterprises that ran into bankruptcy had experience condition of financial distress, but they could not detect financial distress at an early stage and timely take effective measures to prevent bankruptcy, in the perspective of management, it is important to explore a more effective financial distress prediction model to signal early-warning for enterprises which will possibly get into financial distress, so that managers can take strategic actions to avoid deterioration of financial state and bankruptcy, from the view of financial institution, an effective financial distress prediction model can help them detect customers with high default risk at an early stage so as to improve their efficiency of commercial credit assignment.Beaver(1966),one of the first researchers to study bankruptcy prediction, the predictability of the 14 financial ratios using 158 samples consisting of ailed and non-failed firms[2].Beaver’s study was followed by Altman’s model (1968)based on the MDA to identify the companies into known categories. According to Altman, bankruptcy could be explained quite completely by using a comb of five(selected from an original list of 22)financial ratios. Log model is used to deal with two classesclassification problems, and Ohlson was the first apply it to predicting financial distress in 1980[4].The most widely used machine learning method in the field of financial distress prediction is neural net work(NNS),which has strong capability of identifying and representing nonlinear relationships in the data set. Odom and Sharda(1990)made an early attempt to use NNS for financial distress prediction. He used the same financial ratios as Altman’s study and took MDA model as the benchmark[5].From then on, many scholars(Fletcher and Goss,1993;Carlos Serrano-Cinca,1996;Parag C.P.,(2005;etc.)were dedicated to compare NNS with MDA and log, which brought a lot of positive support for the conclusion that NNS can predict financial distress more accurate than those benchmarks[6][7][8].Generally, statistical methods have the advantages of simple model structure and easiness to understand and use, but they have restrictive assumptions such as linearity, normality and independence of input variables, which limits the effectiveness and validity of prediction. In contrary NNS is not constrained by those assumptions and have strong ability of fitting nonlinear relationships between descriptive variables and conclusive variables. But also has the disadvantages such as unfixed structure, over-fitting, needing a lot of samples, and black-box effect.Support vector machine(SVM)is a relatively new machine learning technique, originally developed to resolve local minima and over-fitting problems which are the main sources of trouble to, Shin K.-S.(2005)and Min J.H.(2005) respectively made an attempt to use SVM to predict corporate bankruptcy data and got satisfying results[12],[13].Other applications of SVM by Kim K. J.(2003)and Tay (2001)also showed that it is a promising classification and prediction method[14],[15].This paper attempts to apply SVM to predicting the financial distress of Chinese listed companies and compare the result of SVM with the results got by the methods of Fisher disc analysis, Logistic regression. The rest of the paper is divided into five sections. Section 2 is the brief description of SVM theory. Section 3 is about data collection and preprocessing. Section 4 gives the modeling process and experiment results. Section 5 discusses and analyzes the experiment results. Section 6 makesconclusion.SVM, put forward by Vapnik in 1990 a relatively new machine learning technique, which is developed on the basis of statistical learning theory[9].Former re- searches have shown that SVM has the following merits according to learning ability and generalization ability.1.SVM is based on the principle of structural risk minimization, not on the principle of empirical risk minimization, so SVM can better avoid the problem of over-fitting.2.SVM algorithm is uneasy to get into local optimization, because it is a convex optimization problem and its local optimal solution is just the global optimal solution.3.In practice, when the number of samples is relatively small, SVM can often.get better result than other classification and prediction techniques. A simple description of the SVM algorithm is provided as follow ,in which N is the number of training samples. In the condition that the training samples are linearly separable, SVM algorithm is to find an optimal separating plane, which can not only separate training samples without error but also make the margin width between the two parallel bounding planes at the opposite side of the separating plane get a biggest value.In the nonlinearly separable case ,SVM firstly uses a nonlinear functionΦ(x)to map input space to a high-dimensional feature space. Then a nonlinear optimal separating hyper plane with the biggest margin width can be found by the same technique as linear model. Those data instances which are nearest to the separating hyper plane are called support vectors, and other data instances are irrelevant to the bounding hyper plan. Because most problems are nonlinear separable and line- early separable case is the special situation of nonlinearly separable case only the SVM theory under nonlinearly separable case is stated .So according to original for, the SVM classifier should satisfy the following conditions.An Application of Support Vector Machine to Companies’Financial Distress Prediction 277 in which slack variables .Feature space generally can not be linearly separated, if the separating hyper plane is constructed perfectly without even onetraining error, it is easy to appear over-fitting phenomenon, so slack variables are needed to allow a small part of misclassification. a tuning parameter, weighting the importance of classification errors with the margin width. This problem is transformed into its dual problem because it is easier to interpret the results of the dual problem than those of the primal one.In the optimization problem above, the N-dimension vector of all ones. The three common types of kernel function are polynomial kernel function, basis kernel function and kernel function. Lagrange .A multiplier exits for each training data instance and data instances corresponding to zero support vectors. Do this optimization problem and the ultimate SVM classifier is constructed as following.Source:"for the social and behavioral sciences of statistics", the marginal model, V ol.18 (1), 2009 (1): P23-7公司财务困境预测由于公司财务预警的重要性，本文应用于支持向量危机（SVM）的早期预警金融上市公司的三年数据后，采用交叉验证和网格搜索技术，寻找支持向量危机的合适参数来进行实证研究。