Systematic Influence Of Chinese Listing Companies’ Credibility Crisis In US Capital Market

Integrity and credibility is the basis of business, it’s very important for the survival and development of companies, especially for those listing ones. In the hard environment, chinese companies, especially for those private enterprises, they always discover all kinds of ways to avoiding laws and regulations. Innovating is fine, but sometimes there are some bad atmosphere around chinese companies, it’s incredibility and dishonest. In the thesis, I research the credibility and honest crisis of Chinese listing companies in US capital market most recently.On10th November2010, DA Lian lv Nuo was charged for financial fraud, bulletining dishonest information and Executives’corruption by Muddy Water. From then on, credibility crisis of chinese listing companies in US capital market began, and under the pushing of all kinds of factors, the crisis gradually became the most serious crisis of chinese listing companies in US capital market in histories.After giving the overview of chinese listing companies around the world and the overview of chinese listing companies in US capital market in chapter2, I describe the process of the credibility and dishonest crisis event, then research the systematic influence in four terms. In chapter4and chapter5, the third and forth-level systematic influence was demonstrated by the Granger Causality Test and the VAR Model, Impulse Response Function and the Forecast Error Variance Decomposition.The third-level systematic influence is that in the credibility crisis of Chinese listing companies, US market was influenced by the Chinese listing stocks. And the forth-level systematic influence is that in the crisis of Chinese listing companies in US capital market, the Chinese listing companies in Hongkong capital market was influenced by the transmission mechanism between stock markets.Lastly, I Summarize the conclusion of the research and give the suggestion to the listing companies, multinational companies, diversified group of companies, regulatory organizations and non-listed companies about credibility and honest.