An Empirical Research On The Credit Risk Assessment Of China’s Listing Corporations

As the deepening and development of economic integration and financial liberalization, international community has paid great attention to credit risk. To some extent, the financial crisis that overwhelmed the globe in2008is more of a outbreak of credit crisis. A better handling of credit risk while encourage economy and finance development become a key issue of all parties.As for regulators, the recognition of credit risk of listed companies can efficiently guard against nonperformance of these companies. As to financial institution, a better understanding of credit standing of listed companies can be acquired through the analysis of credit risk so that credit policy can be make to cut loss. As far as the companies are concerned, a measurement and assessment of their credit risk will give them a timely compression of credit status and the management strategy can change correspondingly. Therefore, it is of practical significance to have the credit risk of the public companies recognized, precautioned and supervised.Aimed at the exceptional case of stock market and quoted companies in China, this paper take a certain number of companies as sample to observe the application of KMV model in measuring the credit risk of Chinese public companies through appropriate reformulation of the setting of default point in classical KMV model and equity value. It demonstrates that revised KMV model can recognize the risk difference between ST companies and normal companies and efficiently judge the credit risk of listed companies in our country...