Author(s)

Shuai Ruan

Jinan University, Guangzhou, China.

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.

Special Treatment System, Risk Structure, The Regression Discontinuity Designs

Ruan, S. (2019) Early Warning Effect of “Wearing Cap” and “Catching Cap” on the Company’s Risk Structure
—Empirical Research Based on Breakpoint Regression Design. Modern Economy, 10, 1018-1032. doi: 10.4236/me.2019.103068.