Study On Control Of Credit Risk For Listed Company

Since the early 1990s, China’s securities market has been made administrative examination as the approval system of listed companies. Under the condition of the examination and approval system, the China Securities Regulatory Commission given priority to examination and approval, however it lack of regulation of listed companies in the follow-up. Enterprise could be easily listed by submitting a beautiful prospectus and been favor with the examination committee officials. Some problems have been exposed by this Company which is not well-manage, and make some negative effects. Since the 2008 financial crisis, on the one hand, the crisis caused a serious impact on our country economy, a lot of enterprises’performance has been affected; On the other hand, the financial crisis makes people realize that it is very important to strengthen the management of credit risk identification and control. Listed company as an important participant of market economy, If listed company happens a major credit risk issues, it will cause great influence to shareholders, creditors and other parties, and even destroy the whole financial system stability of the industry. In recent years, in the face of China’s real estate market regulation, steel overcapacity, the situation of enterprise fixed assets investment grows slowly, in the real estate industry and steel trade industry, some listed companies which is not good at risk management control have erupted in credit risk issues.This paper first analyzes the credit risk of three characteristics:one is the credit risk of listed companies has concealment, when its industry is in a boom, it is not easy to come to light. But once industry becomes depression, it is likely to be exposed to serious consequences. The second is that the credit risk of listed companies have strong transitivity, listed companies in the industry are in a core position, there will be many upstream and downstream enterprises in trade relations, in the event of listed conpamy happens credit risk, other companies which in the same industry will also get great influence.Three is that the credit risk of listed companies has obvious not-systemic, it has some relationship with their own business, financial condition. Later in this article, it explains four forms about the credit risk of listed companies:bank loans exceed the time limit, overdue acceptance exceed the time limit, corporate bonds exceed the time limit and listed companies pay back guarantees.Because the listed company credit risk issues affect systemic risk and easy to cause the whole industry, so from the operating performance of listed companies, listed companies public image two aspects to illustrate the impact on the company’s own; From bond investors, commercial banks, trust companies three angles to illustrate the influence of the obligee; From the legal person, natural person holding shareholders, minority shareholders three angles to illustrate the impact on shareholders; From the credit risk concentration, resource allocation efficiency two aspects to illustrate the impact on the market. Later, this paper from the following five causes to elaborate the credit risks of the listed company, and enumerated case evidence. First is the cyclical fluctuations, second is the company’business in blind innovation as well as the company’s own financial condition, thrid is the commercial Banks from excessive credit to tighten credit, forth is violations of guarantee to other companies, fifth is the imperfect corporate governance structure. Aiming at the cause of the credit risk of listed companies, this paper puts forward these following solutions:first is to perfect internal control system of listed company; The second is to perfect corporate governance of listed company structure; Third is to improve the listed company financial situation; Fourth is to strengthen bank risk-control mechanism; Fifth is to strengthen the securities and futures commission system construction. In order to control the credit risk of listed companies, this paper puts forward some reasonable Suggestions, strengthen the control of credit risk of listed companies, and to maintain the stabilization of the whole financial market.