The Comparaiive Study Of Listed Companies Credit Risk By The Use Of KMV Model

As the financial activity of the innovation, credit risk is increasing in theproportion of risk, and it has become one of the most important risk in financialmarket. Its risk’s manifestation is becoming more and more diverse, it is also thedanger of more and more high, the general credit risk management method hasalready can no longer meet the needs of the development of financial market. How toaccurately identify and measure the credit risk, has become more and more important.According to a number credit risk characteristics of listed companies, to predict thesize of its credit risk, which commercial banks and investors in terms of both itsfar-reaching significance. With the globalization of financial information, the gradualopening up of its depth of business and the completion of joint-stock reform ofcommercial banks, makes the risk management sense of the commercial banks tobecome more intense. It strongly requires us to re-credit risk management researchand evaluation, building up a development suited to China’s current economic statusof the credit risk management models, to reduce credit risk, make our economy to befaster and better.First, in this paper, KMV model analysis from two directions in China’s listedcompanies on the applicability of credit risk, and make recommendations, It is makethe KMV model to be better applied in China’s listed companies, It can be used topredict and avoid credit risk. The study found that KMV model in our country is notsuitable, the main reason is our country existing serious share-trading contradiction.In view of the equity division problem is solved basically already。The author tries tostudy the current economic condition, the KMV model empirical analysis of listedcompany of our country, especially the GEM listed company applicability. Throughthe company’s scale, Macro economy variable factors empirical analysis andcomparison of all kinds of Companies in different context corresponding to theparameters of KMV model, KMV model ’s applicability in China.Then, through doing comparing work board and ST of listed companies more, tryto find out the ST listed companies become ST listed company minimum distance todefault, namely a ST into the ST alert distance to default DD, the so-called criticalpoint, the calculation of20domestic delisting listed companies to verify the distanceto default, breach of contract the distance DD is consistent with the above defaultwarning point differentiate, investors can default distance changes to make thecorresponding countermeasures, so as to avoid economic loss, default distancechanges can be done a good warning effect.