A Study On The Relationship Between Guarantee Behavior And Listed Company’s Operating Performance

In the community of listed company in China,external guarantee problem arise veryearly,the guarantee circle which is formated of guarantee behavior by the listed companyand non-listed company appeared frequently.Taking Zhejiang as an example,in the secondhalf of2012, private enterprises in Zhejiang guarantee circle led to hundreds of privateenterprise funds strand breaks and financial distress.By mutual guarantee,comic guaranteeand cross guarantee constitute a warrantly chain,and thus the formation of regionalguarantee circle.the operating performance of listed companies subject to significantinfluence.when a fracture occurring in cash flow in a company,guarantee risk will bespread to the whole guarantee circle by guarantee relationship.even lead to regionaleconomic cirsis and affect regional financial security and stability.In the theoretical analysis,this paper discusses the statistical characteristics of theZhejiang listed companies of guarantee. Mainly reflects in the following three maincharacteristics,the listed companies which guarantee to secure is very popular and increaseyear by year;and listed companies in Zhejiang provide external guarantee amount to netassets ratio is high,guarantee risk is high; illegal guarantee of the listed companies inZhejiang is serious and showed a rising trend year by year.Secondly,the paper analyzes the composition of unit and forms of guaranteecircle.The analysis leads to the conclusion which guarantee lead to mutualguarantee,comic guarantee and cross-guarantee,then constitute the various forms of theguarantee chain,and combination of different forms of the guarantee chain togetherformate the guarantee circle. In the complex process of security relations, guaranteeconstitute the basic units of various security relationship structure and guarantee circle isformated of the mutual guarantee,comic guarantee and cross guarantee.Finally,according to publicly guarantee informaton of listed companies in Zhejiangprovince.the paper outlines all guarantee chain structure, describes the present situationand characteristics of current Zhejiang guarantee circle.Analysis of the conclusions are asfollows,one is the Zhejiang guarantee circle situation appears to be involved in mutualinsurance,comic guarantee and cross guarantee is very more;two is the relationship amongmutual guarantee,comic guarantee and cross guarantee involves the listed company, threeis situation of mutual guarantee companies are similar and the relationship is verystability.guarantee circle risk influences the operating perforance mainly by the balance sheet,income statement and statement of cash flow.In the empirical analysis, we select a measure of operating performance of thecomposite indicator F value and Zhejiang guarantee listed companies are divided intoguarantees insiders and warranties outsiders.we draw the conclusion: one is in theguarantee of the listed company,negatively related to external security index andperformance; there exist a significant difference in operating performance between theguarantee circle listed company and outside guarantee circle listed company,the operatingperformance of the former is worse;compared the guarantee of a circle of listed companyand guarantee outside the circle of security provided by the listed company,we draw theconclusion that the effects of external guarantee circle of listed company on the operatingperformance is of great prominent.