A Study Of The Factors Which Affect Chinese Public Companies' Credit

It has been 16 years from 1990 when the first security market of China set up in Shanghai . When we review these years ,we can find that there are more than 1000 public companies in this booming market now . But just 16 years ago ,there were only several public companies . Flotating an issue has been the embodiment of the modern corporation system in the market economy. The security market plays a very important part in the innovation of the corporation in our country . At the same time ,with the rapid development of this market ,many problems in these public companies have also rapid grow and some of these problems have been exposure. Especially, several "eximious" company were reported in fraudulent financial statements, including "Yin Guangxia "and "Lan Han", many investor come into being suspicion in the foreground of Chinese securities markets.Credit is an old concept and we use it usually in our daily lives .However , "credit" maybe the most complex and the most elusory concept . The credit level of one country's public companies will affect the investors' confidence in this market ,and will affect the foreground of this securities market.Only that the public companies keep theirs promises ,do as what they should do, can the public companies communicate the market with the correct messages and so decrees the cost , collocate all the resources effectively.Only when the public companies be faithful , the investors' benefit can be protected , their confidence can be consolidated ; only when the public companies be faithful ,the market can force other portions of this market .including securities dealers , accountant offices, to be faithful also . In a word , improving the credit level of public companies' credit is very important for investors and the market's effective operation. And this is also the motivation of this thesis.In this thesis, I use questionnaire to survey the factors which affect Chinese public companies' credit. At first, the thesis introduce the correlative theories of " credit" ,and then according to our country's realistic condition the thesis gives a detailed analysis .The second , the paper expatiate the process of this research including how to find the factors , how to survey with my questionnaire and how to analyze my data and how to build up the SEM. In the end ,1 find 6 factors which affect the public companies' credit level. At last, the thesis gives some advices .