Analysis of the factors affecting the credit risk of China´s listed companies

This paper applied the factor analysis method to dynamically evaluate the credit risk of listed companies in China. Sixteen measurable indicators which can reflect the public credits of listed companies are selected and 4 main indicators are extracted by applying the factor analysis method. On the basis of it, 16 sub-indicators are further given to explain the affecting level to the credit of listed companies. It is demonstrated that, the main factors affecting the credit risk of listed companies are: profitability, operating capacity, solvency and growth ability, which has the impact of 38.654%, 26.078%, 19.025%, and 16.242% separately to the credit risk of listed companies. The reasons of these four factors influences are further illustrated and some suggestions are given in the end.