Researching On The Value Of Corporation Risk

In the inefficient secqurities business,it's imPOrtan for investor and financialcorporation to judge the value of the object that you invested .ms thesis explore themethod to measure the risk of the corporati()n and to determine the value of it in theasynunetric caPital market. It's based on the new development of the theory ofinfOrmation econodrics and behavior finance about the rule of risk and thecompensation of the risk. It provides a new way for the valuation of corporation andprovides a operational evidence based on the management of a company fOr theinvestors that aim at minimizing the risk of investment and ma-ximizing the profit ofthe investment.ln the market descibed by efficient market theory the market price has reflectsthe risk of the corporation .So we can measure the risk of corporation and evaluatethe corporation according to CAPM. But in the realistic caPital market especially inthe caPital market of China,the infOrmation fOr the quality of the corporation isobvious asymmetric.So the market price does not reflect the risk of the corporation inthe realistic caPital market.It's wrong for us to continue measuring the risk of thecorporation by the D according to CAPM.ln this paper, the risk has tWo types.One is the subjective risk,and the other isobjective risk. The analysis and measurment of the corporation risk based on the typewhich the risk belong to. It fOund a measurment of the objective risk of corporationbased on 1he key factors of risk.We find the key factors of corporation risk by the keyfactors of the value of the corporation.ms measurment of the objective risk is alsobased on the new definition of risk in the theory of behavior finance.According to thetheory of the information economics that look on the cash dividends as the method totransport infOrmation,it fOund a new way to measure the subjective risk.After themeasurement of the subjective risk and objective risk,it explores a realistic way toevaluate the value of the corporation risk.