Research On The Guarantee Risk Control Of Chinese Listed Companies

Guarantee is a kind of normal economic behavior in the process of operating a company. If we make use of it properly, it can make the creditor, the debtor and the third-guarantor profitable. The third-guarantor comes from the credit of debtor and asymmetric information between the creditor and the debtor. The third-guarantor enhances the credit class of the debtor, eliminates asymmetric information, guides the fund flowing, facilitates the loan market moving effectively, improves the welfare of the creditor and the debtor, and puts the social resources to rational use.Under the realistic circumstance, the credit resources of China are shortage, and the development of the specialized guarantee organization is also not very perfect. As the public company of our country, the listed companies’ finance and management are relatively transparent. And their real founds strength is much stronger and they have the inborn factor to be guarantors. 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.Because of guarantee, a lot of listed companies are in difficulty:the litigation disputes are continuously which are affecting the normal management of the listed companies seriously, and some even go to the edge of withdrawing from stock market. All the problems have enormous negative effects on listed companies so that more and more discussions have focused on financial guarantee.In this paper, we adopt standardize research methods mainly and combine comparison analytic method and quantitatively analysis method. Documents about the guarantee risk control of domestic and abroad were collected and analyzed. On the basis of all literature, combining the current situation in our country, we analyze the theoretical basis on guarantee risk control of listed companies, identify problems about guarantee risk control of listed companies in our country, analyze the causes and propose recommendations on further strengthening guarantee risk control of Chinese listed companies by the theoretical analysis.Except the introduction, this paper is divided into four parts:the first part is the overview on the guarantee risk control of listed companies, including guarantees, the risk of guarantee and the theoretical basis on the guarantee risk control of listed companies in our country. The second part is the status on guarantee risk control of Chinese listed companies, including the development process about guarantee of Chinese listed companies, the problems of risk guarantee control in listed companies and the analysis of its cause. The problems involve that the number of listed companies that provides guarantee is big and become more, the amount of guarantee is big and taking place in many industries, The phenomenon in associated guarantee is serious, huge guarantee and overload guarantee occur frequently and the risk of over due in guarantee occur frequently. The causes of the problems can be mainly summarized as follows, the irrational governing structure of listed companies is not conducive to reject the guarantee resolution, the lacunae in guarantee risk management system of listed companies, the faultiness of the guarantee information disclosure system of listed companies inadequate management for loans of financial institutions, the faultiness of capital market and the scarcity of financing channels,and the faultiness of guarantee laws on listed companies.The third part is about the experience of guarantee risk control in the other countries, including the experience of guarantee risk control in the United States, Japan, Europe and their enlightenments; The fourth part is the thoughts about further strengthen the guarantee risk control of Chinese listed companies, including the overall thoughts and specific measures about how to further strengthen the guarantee risk control of Chinese listed companies From the overall perspective,we hope that we can create a safe and stable financing environment, build a more standardized and rational guarantees legal environment, reduce the financial risks of listed companies. Meanwhile,we should adhere to the principles such as selecting qualified staff, strengthening the safety management, improving risk management techniques.The specific measures include improving the governing system of Chinese listed companies, improving the internal control on in listed companies,improving the guarantee imformation disclosure system of listed companies, establishing integrated laws on guarantee and strengthen the punishment on illegal guarantee behavior and developing the domestic capital market and broaden the financing channels for enterprises,improving the regulatory system of loan guarantee in the bank.The conclusion of this paper is that though the guarantee of listed companies in our country exists many problems, the country, financial institutions and listed companies can do their efforts together, to take some action, making the guarantee risk of listed companies in our country under control.