Research On Evaluation System Of Delisting Risk Stress Testing For Listed Companies

Delisting system constitutes an important part of the capital market regulatory system, which has been widespread concerned by market parties. Listed companies on China’s stock market vary greatly. And there is a big difference between them.Insider trading, disclosure of false information to whitewash statements and other scandals frequently occurred in the capital market. Market parties, investors in particular, want to be able to have more effective regulatory regime to guarantee the effective operation of the capital market and more stringent supervision of listed companies, which can keep bad companies from the capital market.In the writing process of this article, I studied theses on the delisting system of research at home and abroad. Whereas we found the following problems:(1) The delisting system of our country has undergone exploring, establishing, maturing and perfecting stage, in the course of development, Shenzhen Stock Exchange and Shanghai Stock Exchange have issued revised rules for delisting from the original "company Law "to the2012introduction of the GEM, the new delisting regulation of the main market. However, few of these studies directly measured delisting risk. They usually use financial failure and bankruptcy substitute delisting risk.(2) Most of the current delisting risk assessments are financial warning models, which are not associated with the delisting system closely. So evaluation indicators and evaluation standards are not highly relevant to the current requirements of the regulators.Therefore, in order to improve the current situation, the article uses the new delisting rules promulgated in Shenzhen, Shanghai, combined with the current regulations of China’s capital market, designing a delisting risk evaluation system,9evaluation indexes to evaluate the risk of the main market. I choose112ST,* ST, pause listed companies to study, design rating criteria and then get final scores and rating results based on the principle. At last, I conduct a comparative analysis between the evaluation results and the real condition of the listed companies, to verify the effectiveness of the evaluation system.The framework of this essay is as follows:Chapter Ⅰ, Introduction. The content of this part of this paper is as follows: the research background, significance, research ideas, as well as the articles of innovation and deficienciesChapter Ⅱ, Domestic and international literature review. This part consists of foreign and domestic researches.Chapter Ⅲ, The Development and improvement of the delisting system. This part mainly focuses on China’s course of development of the delisting system, the delisting system running situation, the reason analysis, and suggestions to improve the delisting system of China’s capital market.Chapter Ⅳ,, the new delisting rules with the delisting risk. This chapter is mainly about the new delisting rules and discussion on the impact of the new rules on the market.Chapter Ⅴ, the study on the establishment of the evaluation system of delisting risk stress testing. The majority part of data processing appears in this chapter.Chapter VI, research findings, features and suggestions.In this paper, on the basis of previous studies on China’s capital market, the main contribution of the paper is:(1) The article is timeliness and operability. The essay is built on the basis of full study on the new delisting rules of the main market, the system closely linked with the current delisting rules.(2) The evaluation system considers various factors. Previous studies have focused on the investigation of the company’s own operating conditions. Besides, the article added the stock market trading factors in the system in order to establish a more comprehensive analytic system.(3) The evaluation results have a certain reference value. The effectiveness of ratings system has been verified, so the system can provide suggestions and opinions to listed companies about their delisting risks. Also there are some shortcomings in this essay:(1) The indicators of delisting risk assessment do not cover all the factors affecting the company to withdraw. Although I considered financial and non-financial data which have influence on the delisting risk of companies, it still cannot cover all the factors which will affect the company’s delisting.(2) The samples selected in this paper are112listed companies on the main market, which could not avoid the existence of outlier, making the persuasiveness of the article a little weaker to some extent.