The Retreated Risk Research Of Chinese Companies Listed In The United States Based On The Corporate Governance Structure

Since June of2010, Chinese companies listed in the United States have encountered an unprecedented concussion. Many companies were delisted or received the retreated announcement. By now, the storm has been not yet subsided. Why the Chinese companies listed in the United States have been so bad situation? Does the retreated risk have any relationship with the corporate governance? If the retreated risk could be measured? Faced with the crisis, how can the Chinese enterprise do? These questions have become our most important problems to be solved. This article has attempted to combine the company governance and the retreated risk to deal with the risk, based on the corporate governance theory. Through to reference the financial affairs warning theory, we hope to find an evaluation model of the retreated risk and measure the risk. Then we can offer more support for the enterprise decision.This thesis intended to explore the solution to face retreated risk. We wanted to find the retreated reason, then improve the retreated Chinese companies and, make a bright future. Why the companies were gave up by American market? Enterprise should find themselves defects and make enterprise strategic planning to adapt to the market and open up a new world. We also needed to make a warning for listed enterprises and wanted listed companies to avoid withdrawing from the market. The crisis has been lasted. The listed and wanted companies needed to prepare themselves for both eventualities and deal with all kinds of risk. We should enhance the competitiveness of Chinese enterprises and corporate governance to make them go out. Capital output was the highest form of international trade undoubtedly. Chinese companies listed on overseas market had strong economic and political needs. This paper wanted to discuss the withdrawing from the market risk based on company governance. We wanted to search for the relationship between the withdrawal risk and corporate governance structure. Then we can improve the corporate governance level and minimize the retreated risk. This was also the necessary work for the Chinese enterprises to go into the international market. Chinese companies listed on the overseas market are facing a new challenge. Through the research on Chinese companies listed on the American market, we can offer some reference for other countries and regions to deal with the retreated risk. This research was unquestionable.This thesis discussed the current situation of Chinese companies listed on American market and the response to the retreat storm. We also introduced the background of this storm and some related theory. We used empirical study method to make this research. We focused on the analysis among the corporate governance structure’s three component parts and the retreated risk. We made a detailed introduce about the regression results and gave my own views and suggestions about this problem.This thesis can be divided into five parts:Firstly, it gives an introduction of the research background, the research significance, and the research purpose and research methods. We put forward the research framework and point out some innovations and limitations.Secondly, it introduces the position of retreated risk in our country and oversea.Thirdly, it points out the theory basis of our research. The theories have modern contract theory, the system economics theory, financial risk theory and financial warning theory, which provide a theoretical support for the after part.Fourthly, it puts forward the research hypotheses and establishes Logistic regression analysis model.At last, it raises the research conclusion and recommendation.This paper used the theoretical analysis and empirical research method. One side (from the aspect of theory), we combined domestic’s and foreign scholars’ study to retreated risk and funded that present study about retreated risk was incomprehensive. So the author wanted to induct and classify the retreated risk. On the other side (from the aspect of empirical research), we combine the ownership structure, characteristics of the board of directors, management incentive with the retreated risk probability to make the logistic regression analysis. We wanted to use this method to know the relationship between the company governance and retreated risk. Then we raised the consolation and proposed some countermeasures.In this thesis we had two innovation points. One is using logistic model to measure overseas listed company’s retreated risk. The other is the particularity research perspective. We put the study of retreated risk of Chinese companies listed in the United States into the corporate governance framework. The application range of company governance theory had been expanded.