TITLE:
Early Warning Effect of “Wearing Cap” and “Catching Cap” on the Company’s Risk Structure —Empirical Research Based on Breakpoint Regression Design
AUTHORS:
Shuai Ruan
KEYWORDS:
Special Treatment System, Risk Structure, The Regression Discontinuity Designs
JOURNAL NAME:
Modern Economy,
Vol.10 No.3,
March
28,
2019
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.