Abstract:

[Objective] Based on the concept of classified supervision, this paper depicts the multidimensional characteristics of illegal listed companies so as to assist the regulatory authorities in identifying signs of risk and discovering clues of illegal activities. [Methods] Taking China's listed manufacturing companies punished for violations as the research object, the RFM model is introduced to evaluate the violation risk index to reflect their violation severity and regulatory concern. On this basis, a hierarchical cluster analysis is performed in six dimensions: profitability, solvency, operation ability, dividend ability, capital structure, and corporate governance, and the violation portrait of listed companies is drawn. [Results] According to the RFM score, the illegal listed companies are divided into four categories: low risk, medium risk, sub high risk, and high risk. The listed companies with different violation risk levels have different characteristics. Weak operating capacity, solvency and corporate governance capacity, and high capital structure often mean high violation risk, which is consistent with the internal logic of violations. [Conclusions] The regulatory authorities should take differentiated measures according to the violation risks and characteristics of listed companies so as to further improve the regulatory accuracy.

Key words: RFM model, violation, classified supervision, hierarchical clustering, enterprise portrait