Listed Companies Guarantee

Many problems about listed company's financial guarantee have occurred on security market, for example, listed company was used malignantly as a guarantee stool, or current "listed company guarantee circle" phenomenon. All the problems have enormous negative effects on listed companies so that more and more discussions have focused on financial guarantee. Therefore this thesis pays attention to seek the current problems about listed company's financial guarantee and analyzes the relevant reasons, in order to put forward some suggestions for solving the relevant problems. This thesis is based on the logistic structure: seeking problems---analyzing problems---solving problems. Based on this thought, the thesis includes three chapters:Chapter1,The current situation and trend of listed company's financial guarantee. Firstly, this chapter confines financial guarantee's definition to joint liability financial guarantee in this thesis. Secondly, the research focuses on development of listed company's financial guarantee. The guarantee was mainly parent company before July of 2000. After that listed company guarantee for each other resulting in " listed company guarantee circle" phenomenon. Chapter2, Positive study for three listed company guarantee circles. Firstly, this chapter chooses more than 60 listed companies as sample. These companies are divided into three guarantee circles according to their regions. Secondly, it gathers the relevant information of their financial guarantee from their annual reports (2000-2002). Thirdly, this chapter analyzes the information and points out some unreasonable and incorrect problems, including two aspects: guarantee activity problems and relevant information disclosure and accounting problems. The problems about guarantee activity includes: some listed companies still guarantee for their parent companies; some listed companies pay attention to guarantee for their subsidiary companies which hold some potential risks; some listed companies even guarantee for companies with worsen situation; many listed companies have over guaranteed. The problems about information disclosure and accounting includes: some listed companies don't disclose their guarantee information; some listed companies don't disclose guarantee information enough; some listed companies don't affirm the "projected liability" on time or enough. At last, this chapter analyzes the economic result of improper financial guarantee that guarantee suit will result in decrease of profit directly. Chapter3, The reasons and relevant suggestions of listed company's financial guarantee problems. Based on the above analyses, it can be concluded that some elements have resulted in the current situation, which can be divided into two aspects: internal and external. Internal elements include: listed company's demand of guarantee loan; the problems of guarantee's examining and approving system, such as the board of directors can't exercise their power, the directors and the secretary of board of directors don't perform their duties and the managers get too much power. External elements include: banks don't pay enough attention; CPAs don't withhold enough cautious; the current rules are lack of foresight and deterrent. In order to avoid the worse situation, some suggestions are put forward: perfect the examining and approving system for guarantee; strengthen information disclosure of guarantee; establish a punishment system for the person who should take the responsibility of improper guarantee; perfect the guarantee loan supervising system of banks.The characteristics of this thesis:1. This thesis gathers data of guarantee circles from 2000 to 2002, analyzes the problems about listed company's financial guarantee and seeks the relevant reasons. 2. This thesis analyzes the accounting problems of guarantee comprehensively, and puts forward some standards about how to affirm "projected liability"3. This thesis researches the latest "Xinjiang listed company financial guarantee ci...