The Research On The Risk Rating Of The Chinese Listed Companies

The listed companies are the preponderant groups in our national economy,with the quantity increase and scale enlargement, they can represent the real situationof our national economy more and more. The listed companies have advantages overmany indices, however, they are also puzzled by risks, which should be attachedimportance to. The research on the risks of the listed companies is important to thecompanies themselves and the investors as well. On the trend of the share economybecoming the important form of modern economy, the essential attributes of thestocks get the more specific explicit displays. The process of stock exchange becomesthe value evaluation process for the stock issuing company, and stock price turns theexplicit manifestation of the value for the listed company. The value of company isthe inherent factor for the stock value, and is affected by other factors, such asprofitability, industry foreground. Besides, the company is the basic unit of moderneconomic society, and is affected by macroeconomic policies, other financialproducts' value and economic cycles. So the stock price often appears to be fluctuated,which causes the risks change of the listed company. It is eager to solve the problemsof setting up the scientific risk measurement, analysis and rating systems as basis forthe managers to control the risks effectively.As for the definition of the risk, scholars give some definitions, mainly from thefollowing points of view, on the uncertainty of result, or expectation or the distancebetween the results and point of reference. It bases on the second point of view todevelop the positive analysis. There are three risk measurement methods generally,they are indices based on the variance and standard deviation of the yield, on theHurst index and on the lower partial moments of the yield. However, these indiceshave their own advantages and disadvantages. It analyzes the particularity of the risksof our listed companies, and then chooses the suitable risk measurement method offractal analysis method, puts them under the uniform framework by Hurst index,mean and kurtosis. It has four grades with the piecewise function. Therein, it chooses15 listed companies at random, and analyzes them with relative financial data such as asset-liability ratios, making the results reasonable.From this dissertation, it is complicated to build up a model for the risk ratings ofthe listed companies, many correlative returns should be applied into and it can notapply them completely. Therefore, it needs to further research and explore in manyaspects and entirely puts the risk ratings into practice.