Research ArticleOpen AccessGoogle Scholar indexed
Early Warning Effect of “Wearing Cap” and “Catching Cap” on the Company’s Risk Structure <br/>—Empirical Research Based on Breakpoint Regression Design
Jinan University, Guangzhou, China
- 1 Jinan University, Guangzhou, China
Modern Economy·Volume 10 (2019)·Pages 1018–1032·Published 28 February 2019·DOI10.4236/me.2019.103068
Copy link · social · email
Abstract
This paper takes the listed companies in China from 2010 to 2015 as samples, which uses the breakpoint regression design to analyze the change of risk structure and its possible mechanism of listed companies after wearing and removing hats. The results show that the short-term solvency of listed companies deteriorates after wearing hats, and the long-term liabilities increase significantly. R&D expenditure decreased significantly, and cash flow level deteriorated. Financial leverage and comprehensive leverage increased significantly, and the total market value of the company decreased significantly, which led to a significant deterioration in the short-term financial risk structure of the company after wearing a hat.
KeywordsSpecial Treatment SystemRisk StructureThe Regression Discontinuity Designs
- Servaes, J. (2017) A Matter of Trust? The Bond Market Benefits of Corporate Social Capital during the Financial Crisis. Accounting Research, No. 4, 23-27.
- Cai, W.C. (2016) Empirical Analysis of Financial Deterioration Prediction of Listed Companies. Accounting Research, No. 4, 31-38.
- Feng, Y. (2009) A Study on the Usefulness of A Share Surplus Report—An Empirical Study from Shanghai and Shenzhen Stock Markets. Economic Research, No. 6, 21-28.
- Lv, C. (2007) Information Advantage, Timing Behavior and Insider Trading of Major Shareholders. Financial Research, No. 5, 179-192.
- Li, Z. (2006) An Empirical Study on the Performance of ST Company’s Cap Removal under the Pressure of Delisting. Friends of Accounting, No. 2, 53-59.
- Wu, J.H. (2013) An Empirical Study on the Prediction of ST Companies in China’s Securities Market. Economic Science, No. 6, 57-67.
- Tang, Q.M. (2006) Information Content and Influencing Factors of Listed Companies Being Specially Processed (ST) Announcement. Financial Research, No. 9, 61-71.
- Peng, J. (2011) CEO Change and Financial Distress Recovery—An Empirical Study Based on ST’s Listed Companies “Caps”. Journal of Capital University of Economics and Business, 14, 47-54.
- Cheng, J. (2010) Study on the Status Quo of Executive Compensation Incentive Mechanism of ST Company—Based on Empirical Evidence of Listed Companies. Friends of Accounting, No. 30, 64-66.
- Mahenthiran, J. (2009) Analysis of Financial Statement Analysis and ST Forecast of Listed Companies. Audit Research, No. 6, 60-63.
- Green, J. (2009) Should a Listed Company Lose Its “ST” for Two Consecutive Years? Economic Research, No. 3, 100-107.
- Yang, J. (2006) Research on the Role of “Special Treatment” in Listed Companies. Accounting Research, No. 8, 15-21.
- Bai, J. (2004) New CEO Characteristics, Management Team Adjustment and Corporate Performance—Based on Data Empirical Data of ST Listed Companies. China Management Science, 22, 47-55.
- Zhu, T. (2012) Who Can Exempt Salary Punishment?—Based on the Research of ST Company. Accounting Research, No. 12, 46-51.
- Zhu, D.S. (2006) Research on Cross-Layer Governance of ST Risk in Chinese Listed Companies: Based on Regional Differences. Economic Geography, 34, 23-30.