Financial-influence Research On Non-performing Assets Of Listed Company In China

The existence of Non-performing assets (NPA) severely influence the dependence and the relevance of financial accounting information, which result in falsified increase of assets and profit and bad latent losses, distorted the facticity of corporation's financial position and performance, and it likely to be one of the means to sugar up the business profits, which go against the objective estimate of company's financial performance for investor. As the exaltation with the quality of listed company's finance information, the existence of NPA has already cause people's vigilance, so it has important meaning to the research of NPA.In order to do positive research on NPA's financial influence, the article firstly exactly define the NPA of company, describe the scope of NPA, and analyzing the reasons of how NPA come to being and the factors that influence NPA on account, designing the index torelatively weigh the NPA--R. Secondly, established financial influence model of NPA,that is a measure and evaluate model of the degree of NPA in listed companies--Gmodel, the operation method of the model is: Computing nine indexes from X₁ to X₉ of a group of companies, then standardize the indexes to ZX₁～ZX₉,make them into G model, we get G-value. The function of G model is that: once we get G-value, compare them with the other company's, that is to say if it has a high value of G, and it's quality of assets is low. After testing the model, the author used it into listed companies of Hebei province, analyzed the statement of NPA of Hebei province. Thirdly, choose 808 A share companies that listed in Shanghai as study sample, test the finance influence of bad assets, the result expresses that they have negative relativity between NPA and profitability, short-term solvency and activity, however, they have no obvious relationship between NPA and develop ability.Throughout the article, the writer carried on innovation at the following two aspects: the first is choosing enough listed companies to test the financial influence of NPA, (he second is that established the measure and evaluate model of NPA, that is G model.