Comparative Study Of Financial Factors Which Influence The Credit Risk Intendency Of Chinese Listed Companies

In2008, the subprime crisis happened in the United States and then swept aroundthe world. After the crisis, the academic switched the focus in risk modeling toqualitative and quantitative analyzing credit risk to control the moving trend of creditrisk. To our country’s commercial banks, the major credit risk is from the default oflender. Hence, how to evaluate lender’s credit risk and control became an essentialpart of bank’s credit risk management system.If the company is suffering loss or shortage of capital, financial ratios will godown to reflect this phenomenon. At the same time, the credit risk level will go updue to the deterioration of the company’s financial status. As an opposite, the creditrisk level will go down which is reflected by financial ratios if the company has takensome steps like changes in strategy or debt reorganization to improve the financialstatus.The writer chose some of manufacturing A-Share companies which are listed inShanghai and Shenzhen markets as variables and categorized them to four samples bychanges in different years. Then concluded the financial impacts to make credit riskgo up and down by analyzing the company’s financial rations with using the statisticmethod of mean analysis, factor analysis and step-wise discriminant analysis and wealso analyzed the cause of different financial impacts. The conclusions are: The mainimpacts which make credit risk go up are reflected in the company’s profitability,development, cash flow status, operation and growth ability. The major impacts whichmake credit risk go down are reflected in the company’s debt reorganization statusand long term and short term debt solvency ability. Then we put up the points whichshould be noted by commercial banks when evaluating different credit rating lendersand new direction for using discriminant analysis to evaluate credit risk.