The Relationship between the Change Trend of Financial Distress and Ownership Structure

In order to investigate the relationship between ownership structure and the change trend of financial distress, this paper divides listed companies into two groups(32 companies from distress to worse and 19 from distress to normal in 2007) according to the change trend of financial distress After comparing characteristics of ownership structure of the two groups of companies, the paper finds companies with moderate ownership concentration is easily to change from financial distress to normal. The paper also finds an interesting result,which is contrary to some previous literatures. And the result is companies with low ownership fluidity of top five shareholders easily bail out financial distress.