A Research On Relevance Of Securities Investment Risk And Listing Corporation Finance

On financial markets, risk management is a long on unabated topic, risk management is the importantcontent of guaranteeing the benign operation of financial institutions, financial risk is the possible losseswhich caused by the price fluctuation of financial products. Under the background of economicglobalization and financial liberalization deepened, the form of financial risk also emerge in an endlessstream, showing diverse, complexion. In the year of2007, subprime mortgage crisis which erupted inAmerican caused great harm to world economic, at the same time; people pay more attention to financialrisks. In the face of complex financial products and financeial derivatives risk management, many scholarsintroduce financial engineering and a series of professional technology into the risk management activities,and put forward to risk identification and control from a deeper level.Facing of the instability of the financial markets, how to effectively avoid risks, the risk factors whichinvestors need pay attention to. Factors in the number of investment models, portfolio effectively canreduce risk, we need to study the benefits and risks of each asset in the portfolio, as well as the correlationbetween the portfolio assets. Therefore, in order to effectively control the risk, we must have acomprehensive understanding of the various factors affect the risk analysis which indicators cansignificantly affect the size of the risk and impact direction.On the basis of previous studies, the paper based on the perspective of investor protection, analysis therelationship of securities investment risk and listed corporation finance.During the measurement of investment risk, we use VaR method. Found that stock returns are notstrictly follow a normal distribution, so we adopt a more reasonable distribution of stock returns, during the portfolio risk measurement, we use Copula model and study the distribution of stock returns, then wemake numbers of simulation by Monte Carlo method, the result is more scientific and reasonable.In order to be able to more fully reflect the company’s operating and financial position, we select manyfinancial indicators from three aspects: debt repayment and capital structure, profitability, operations andthe grow ability. But in order to eliminate the correlation between the various indicators andmulticollinearity, we need principal component analysis to reduce the dimensionality of the indicators, thenwe select7financial indicators reflect the company’s situation.During regression analysis, we select50samples companies16years of data, we need panel model toanalysis the three-dimensional cross-section data, and finally we drawn5financial indicators which cansignificantly affect the securities investment risk. Then, we give investors, listed companies andgovernment regulators about the risk-averse.