An Research Into Regulatory Classification Of Listed Companies

As a regulatory system innovation, this research about classified supervision of listed companies establishes a new regulatory idea. Based on the classification and evaluation the risk of listed companies, the securities regulatory authorities could target different risk categories of listed companies to adopt differentiated regulatory measures, for some listed companies which good at the operation, and finance quality, a number of regulatory resources can be allocated less, while there are significant financial risks and lack of corporate governance of listed companies, you can pay more attention to, through the implementation of more stringent regulatory measures to urge the company to resolve the risk, improve its management. It is not only help the regulator to highlight the supervision of s focus, and rational to allocate the regulatory resources, to ease the rapid development and the contradictions of shortage on supervision resources; the other hand, play the survival of the fittest mechanism to promote the market resources to focus on high-quality listed companies, to improve the listed companies continued to develop normally.This paper uses consumer-balanced theory in economics to derived regulatory equilibrium model. It takes the regulatory authority as a single consumer, and the consumer behavior is to use the regulatory resources to exchange the benefits. Based on the consumer-balanced theory, the regulatory authorities achieve a balanced model to max the utility, in the context of limited regulatory resources; regulatory authorities should distribute various regulatory resources of listed companies on the marginal utility. The equilibrium model demonstrates that classified supervision of listed companies is conducive to rational allocation resources of regulatory supervision and improves the efficiency of supervision. From the management perspective, the incentive compatibility theory provides a theoretical basis on differentiated regulation of listed companies. The essence of classification regulation is to make company which comply the regulatory objectives to get more policy support, and achieve their business objectives; on the other hand, these companies which not meet the regulatory objectives will be more policy restrictions, forcing them to either improve their situation and behavior, or out of the market. Such monitoring system of supporting the superior and limit the poor, make supervisors need to meet the regulatory objectives and profit-maximizing behavior for listed companies, reflects the essence of the principle of incentive compatibility.On the premise of classification regulation, it is need to evaluate and divided risk categories of listed companies. There are many research literature and evaluation system in the world-wide for listed companies. But looking at the starting point, the assessment of listed companies risk can basically be divided into investment risk assessment and credit risk assessment, the former to serve investors, the latter to serve the creditors. However, from the supervision perspective, the regulator of listed companies view the risk is different from the investment risk, but also different from credit risk. Therefore, whether investors or creditors, who were only concerned about their own interests, while the regulator of listed companies have no direct interest, its duty is to safeguard the interests of listed companies and all of the legitimate interests of stakeholders, safeguard social and public interests. Therefore, this paper first proposed the definition of listed companies, the risk regulation of listed companies is based on the regulator perspective, is a listed company's own existing obstacles to achieve regulatory objectives of the various uncertainties factor. On the premise Classification regulation, it is to evaluate regulate risk for listed companies and divided into risk categories, and the regulators accordingly different risk categories of listed companies to implement differentiated supervision.Through analysis, this paper shows that there are three uncertain main aspects affect the risk supervision of listed companies, such as the financial quality, corporate governance and industry conditions. This paper references the experience and achievements of used investment risk assessment and credit risk evaluation of listed companies, and supervision of securities firms rated, from the financial quality, corporate governance and business environment, the risk assessment indicator system was established, and it use of analytic hierarchy process, efficacy coefficient method and the expert scoring method to determine the various indicators weights of the regulatory risk, construction supervision assessment model of listed companies risk. By empirical analysis 31 listed companies regulatory risk assessment in Shenzhen Stock Exchange, this paper proved that the model of listed companies in regulatory risk assessment was effective.The focus of classified supervision of listed companies is establish different modes of supervision according to different categories and combination, form a scientific, comprehensive, standardized classification of operation mechanism. As an innovative system, the implementation of regulatory classification for listed companies is a systematic project, need to adjust the monitoring philosophy, regulatory and supervisory systems, need to clear regulatory objectives and principles of classification; need to classification standard, basis and implementation of procedures; the need for establishment and improvement of classification systems and regulatory mechanisms. In these respects, this paper put forward constructive suggestions. With regarding to the different categories of listed companies, this paper proposes classification regulation policy recommendation from the daily monitoring, policy support, risk disposition. The overall guiding principle is:it is autonomy for corporate which is high-quality, adopt a tolerant regulatory policy, and prevention and control high-risk companies with a comprehensive way, to promote self-regulation of listed companies within the health improvement of the mechanism, timely prevent and overcome these risks.