Securities Ergulation、Local Government And Listed Companies’ Financial Risk Dissolve

This paper from China’s capital market transition period is actual set out, emphasize analysedour country securities regulation under the local government for " protection rent " in thejurisdiction of listing corporation financial distress risk actively resolve. Listing corporationfinancial distress risk supervision process, securities regulators can be flexibility in the use of thecapital market resources allocation--the issuance of securities qualification control, actuallymakes the issuance of securities the opportunity to become a local government of appropriablequasi rents: local government only do good local listing corporation financial distress risk dissolvethe job, raise the quality of listing corporation, its jurisdiction the company will be in the nextissue of securities eligible to compete for more opportunities, otherwise this opportunity will bereduced.This paper studies from home and abroad for listing corporation financial distress basedresearch, combing the listing corporation financial plight, prediction, and solutions to the research,we will from the behavior of local government in the perspective of China’s listing corporationfinancial trouble resolving mechanism research. On the behavior of local government in theperspective of China’s listing corporation financial trouble resolving mechanism, we are to theeconomics of property rights and transaction cost the rent-seeking theory appropriable quasi rentsas the theoretical basis, to local government and securities regulators two angle analysed localgovernment and securities regulators why actively participate in solving the listing corporationfinancial distress risk, how they were listing corporation financial risk, which in this mechanismthe respective played what role.This is our China’s2005-2010years in financial trouble listing corporation as researchsamples, found on the region into financial distress of this period the area listing corporation applyfor financing through the rate had significant effect, and the rationality of local government shouldaccording to its executive ability, will strive to reduce the area of the financially troubled listingcorporation, improve their quality of listing corporation. The two result is fully proved:(1) theperiod around the company’s application for issuance of securities by the SIEVC audit from theperiod of listing corporation in financial distress ratio significantly affect, shown in2005-2010years, China Securities Regulatory Commission issued the securities regulation consider aroundlisting corporation financial distress risk, i.e. existence based on securities issuance control listingcorporation financial distress risk reward and punishment mechanism;(2) the local governmentexecutive ability is different also have significant impact on the regional listing corporationfinancial distress situation exists, which demonstrated that the local government will be a rational response to the central regulators of listing corporation financial distress risk incentive mechanism.This paper analyzes the securities issued under the control of the local " protection rent " behaviorof the local government to participate in local listing corporation financial distress risk resolvingmechanism, where the logical mechanism is the central government securities issued by the localgovernment in order to avoid the qualification control appropriable quasi rents rent dissipation andactively participate in the jurisdiction of listing corporation financial distress risk.