A Study On Influence Factors Of Special Treatment Listing Corporations’ Financial Risk Change In China

In recent years, with the development of economic globalization accelerating pace,the enterprises are acquiring more opportunities and facing greater challenges. asChina’s capital market is not mature enough, and stock market volatility, the number oflisted companies which have been listed as ST or*ST is increasing, even causingequity,creditors and stakeholders attention. Special treatment for listed companies’financial risk further changes trend becomes critical, which is the focus of this study.The main factors of tendency of financial predicament special treatment throughaccurate analysis of the effect of the listing Corporation, will help managers to improvemanagement, investors to make the right judgments, bank loans and regulators toeffectively improve the regulatory measures.The technology roadmap this study is like that:First, the introduction part. Mainlyintroduces research background, significance, methods and technical route of this paperand innovation; Second, the literature reviewed. Mainly from domestic and foreignfinancial distress prediction research literature, from financial distress and corporatefinancial distress causes two aspects to elaborate research methods, in order to lay thetheoretical basis for further study of this paper; Third, the theoretical analysis. Based onliterature research model to build financial risks model related to the selected variables,respectively, from corporate solvency, profitability, cash flow and working ability infour areas, which selected16financial indicators,and drawing on relevant literatureselected two macroeconomic variables includes industry index and interest rate,Qualitative analysis of how these variables to influence special treatment for listingCorporation financial risk level changes;fourth,empirical analysis. Mainly base onMario Hernandez Tinoco, Nick Wilson (2013) research ideas, first of all, study design,including sample selection, the variables to determine and modelconstruction,etc;Then,the initial selection of16financial indicators for theindependence test and Pearson correlation test,and ultimately determine the rate ofassets and liabilities,capital and the ratio of total liabilities,shareholders’ equity rate ofprofit,operating profit rate, debt guarantee rate,accounts payable ratio and stockholder’sequity/total liabilities about8financial indicators coupled with the industry approached mentioned index, interest rates two indicators of macroeconomic variables to worktogether to build the panel Logit model, using Stata software to specific analysis byHausman test to determine the fixed effects model; Finally, the model predictions testand robustness tests; fifth, the conclusions and research limitations. According to thetheoretical analysis and empirical analysis method of combining the rate of assets andliabilities,capital and the ratio of total liabilities,operating profit rate, interest rates andin some years will significantly affect special treatment level of listed companies’financial risks, and on the basis of relevant conclusions we providing somesuggestions. This article highlighted the limitations of the last part of the Department,and to propose future research prospects.This features of this paper includes:(a) Many domestic and foreign scholars in thestudy of enterprise financial risk aspects, often is simply divided into ST companiesbusiness and non-ST companies to the enterprise’s financial risk monitoring. The articlewill deal with particular levels of financial risks listed companies classified, to researchthe further special treatment trends (deterioration or improvement) of special treatmentcompanies.(b)Previous literature mainly from the financial point of view to building andimproving financial early warning model to analyze the financial factors which leadnormal company to abnormal company.In this paper, we constructed the analysis modelconsidering the delay effects macroeconomic and financial indicators to study thefinancial risks changes of special treatment companies.which providing a newperspective, models and methods for the analysis of corporate financial risk to.