Analysis Of The Impact Of Shanghai RAAS's Financial Behavior On The Stock Price Collapse

The prices crash in SHANGHAI RAAS was a typical event.In 2015,the company planed to use 1 billion yuan of for venture capital,and it increased to 4 billion yuan in2016.Shanghai RAAS's was suspended on February 9,2017.Then,the SHANGHAI RAAS's stock drop stop in 10 days.Execpt the market stock decreased 26.6% during it suspending,the company's stock deceased 25.94% beonyd the market in 10 days.The company losed 1.3 million in three quarter,because of the financialization.This article research in if is fiancilization influence the collapse and how to influence it.Firstly,the article measures the rate of financialization,and it finds that from 2014 to 2015,the company's financilization rate grow from 0.0029% to13%.Secondly,the article use stock collapse model to measure the risk of share collapse,and it find that the risk of share collapse grow apparently with the growing of the financilization rate.In the short term,the event analysis method was used to find that Shanghai lashi financialization did have a negative impact on stock prices in the short term.In the long-term transmission mechanism,this paper uses the VaR model to find that the overestimation of managers has led to underestimation of financialization risks and make the wrong strategy on the investment.Besides,the financilization occupy the money in main business.According to the theory of information asymmetry,when the company get profit from financialization it can cheat the investor,but when the company failed in financialization the promblem will be exposed.Because of the suspend,SHANGHAI RAAS'stock confront the stock crash.Finally,the paper gives some advice to the industry and government from the experience of the SHANGHAI RAAS.