Study Of Credit Risk Measurement In Xinjiang Listed Companies Based On KMV Model

In 2007, the outbreak of the sub prime crisis made the credit risk impressive again. Although the crisis had past eight years, but it had a deep influence. In the past eight years, the debt of listed companies surged fast in our country. In order to prevent risk, the credit risk of listed companies must be measured. Comparison of the model showed that KMV model had good applicability in our country. Its measurement result was more accurate than other models, therefore, this article chose using the KMV model to measure the credit risk of listed companies.Xinjiang is located in the northwest region of our country, the speed of economic development is relatively slow. Listed companies in Xinjiang start lately and have weak ability to control and dissolve the credit risk. For this reason, this paper uses the KMV model to measure the credit risk of listed companies in Xinjiang.The first part elaborated the selected topic background and introduced the basic situation of listed companies and feasibility and necessity of measurement in Xinjiang..The second part elaborated the credit risk review, which included the connotation of credit risk and the method of credit risk measurement. The third part elaborated the theories of KMV model and amend the parameter of the model. The fourth part was measurement of credit risk of listed companies in Xinjiang based on KMV model.In the final part: countermeasures and suggestions were putted forward from the perspective of listed companies, commercial banks and the government.The mean of this paper was to measure the credit risk of 35 listed companies in Xinjiang. Commercial Banks, investors and other financial institutions may make their own investment decisions according to result; Government may understand the status of the listed company’s credit according to result and perfect the corresponding policies and regulations; Listed companies can improve the ability to manage the credit risk.