Research On Credit Risk Assessment Of Private Listed Companies In China

In our country,the private economy is an important component of socialist market economy,aroused laborer enthusiasm adequately,promoted the development of productivity.However,under the background of critical economic situation at home and abroad and continuous exposure of financial risks,the development of China’s private economy is facing greater uncertainty.Nowadays,although the state has issued various policies to encourage the development of private enterprises,the development difficulties such as lack of financing channels and difficulty in financing also expose the deficiency of risk prevention in the operation process of private enterprises.Hence,the research on credit risk of private enterprises is the key to solve the risk management in the operation process of private enterprises.Based on the need of risk research and healthy development of private enterprises,this paper reviews the theoretical basis of credit risk assessment of listed companies and relevant literatures,analyses the present situation of Chinese private listed companies’ credit risk,and tries to study the Chinese private listed companies’ credit risk from two aspects.On the one hand,selecting 2332 private listed companies and 1051 state-owned listed companies as the research object,using the KMV model to measure the default distance of China’s private listed companies and state-owned listed companies.The size of the average default distance explains the difference of credit risks between the private listed companies and the state-owned listed companies.On the other hand,according to the definition of credit risk standard(the credit risk of listed companies by special treat is high,the credit risk of listed companies by non-special treat is low),selecting 63 private listed companies and 63 private listed companies by nonspecial treat which were selected by EXCEL as the research object.and then,using Logistic credit risk assessment model to measure the probability of default of private listed companies in our country based on the indicators system of the company’s financial indicators and the governance structure,and providing related parties a suitable tool to evaluate the credit risks of the private listed companies.Finally,in view of the current problems faced by private enterprises and combined with the research conclusions,this paper puts forward several policy Suggestions,hoping to contribute a little to the healthy and sustainable development of China’s private economy.