I will. The bankruptcy of a company is generally insolvent, because the poor management of the company leads investors to be pessimistic about the company's stock, so they are unwilling to invest in the company's stock. As a result, the company's capital turnover efficiency is not high and its operation is more difficult. If this vicious circle continues, the company will easily go bankrupt. This relationship is mutual.
Second, analysis
1, the falling stock price affects the company's financing ability. Because generally speaking, the stock price will fall only when the company encounters difficulties in operation. When the stock price falls, potential creditors or investors will suspect that the company is in poor operating condition, thus raising the debt cost, or delaying or even canceling loans or investments;
2. The stock price decline affects the company's current debt situation. Based on the same suspicion that the stock price decline is caused by the company's poor condition, the company's creditors will try to seek better protection, either by increasing collateral, raising the debt level or raising the debt cost. In addition, some debts guaranteed by the company's stock will be required to increase collateral or even pay off in advance.
3. What are the factors that lead to the bankruptcy of listed companies?
1, relying too much on a single product or a single customer, and lacking enterprise in product development, market trend research and market development;
2. Excessive expansion of enterprise business leads to insufficient development potential, and the expanded business scope may shrink due to unstable foundation, which will eventually lead to enterprise bankruptcy;
3. Blindly developing risk business, but lacking the market trend of such business and the grasp of relevant professionals, such business may become the fuse leading to the bankruptcy of enterprises;
4. Poor internal management, lack of financial accounting control and lack of financial professionals may lead enterprises to get narrower and narrower when they encounter financial difficulties and eventually go bankrupt.