Comprehensive Evaluation System Of Var-based Listed Companies

With the globalization and integration of the world's economy,the appearance of the modern financial theory and the development of the informatics technology,the financial market became more and more fluctuant. The listed companies,as the main participant in Chinese or worldwide financial market,will have to be involved more financial business,which would bring more financial risk. Therefore,how to assess the market risk and re-evaluate its impact on the value of the listed companiesbecomes an essential and pressing problem.In this paper,we review the evaluation theory about listed companies,and thenanalyze the shortcoming of the existing listed company's evaluation system,and discuss how to improve the evaluation system. Considering the increased volatility in financial market over the last decades and a strong growth of derivative products as tools to manage financial risk,companies willingly assume business risk in order to create a competitive advantage and to provide value to its shareholders. So a scientific evaluation system should correctly diagnose the risk of a company. In this paper,we use VaR,which provides an easy-to-understand standard of measuring and managing financial risk,to analyse a company's downside risk,The proposed system not only evaluates the listed company's finance,but also introduces a new idea:risk evaluation and integrates the finance evaluation and risk evaluation. This proposed system can also be used as a practical tool for the investor to set up their portfolio and for the supervisory institution to judge if the market is over opportunistic.