Research On The Internal Guarantees Of Groups And A More Convert Route Of Tunneling

After the "Company Law" and the departments such as the China Securities Regulatory Commission and the China Banking Regulatory Commission liberalized restrictions on the related guarantees of listed companies,the related guarantees of listed companies began to enter a period of rapid development.As an important force,the group's internal guarantees also saw rapid growth with more than 20%growth every year.However,with the increase in the use of related guarantees within the group,the number of cases in which the related parties of the group use guarantees to tunnel has also begun to increase,and the tunneling route has become increasingly covert.In this context,this paper takes the events of all A-share listed companies providing related guarantees to the Group from 2006 to 2015 as research objects,and deeply studies the characteristics of the group's internal guarantees and their covert tunneling route.First,the ultimate controller of the listed company is traced,and the listed company belonging to the enterprise group is screened based on the ultimate controller's controlling situation.Then,the development and data characteristics of the group's internal guarantee are sorted out to form the basis for follow-up research.Secondly,this article believes that the path of the group's internal guarantee short-selling listed companies can be divided into two types:"dominant route" and "covert route".Among them,the "dominant route" refers to the profit transmission path that the listed company guarantees for the parent company.The"covert route" refers to the profit transmission path that a listed company guarantees for its subsidiaries or other companies within the group.Based on this,this paper uses other receivables as a measure of tunneling,and uses multiple regression to test whether the group's internal related guarantee is a way of tunneling and what kind of route is chosen to tunnel.Further,by adding property-property variables,the gap between state-owned and privately-owned groups is examined,and the robustness test of PSM paired samples is performed.The study of this paper finds that 1)the group's internal guarantees are indeed a tunneling.The increase in the amount of guarantees provided by the listed company for related parties within the group will increase tunneling by approximately 0.2%.This is even more pronounced in companies with large size and high debt but good financial conditions.2)Different from previous perceptions,the empirical results of this paper show that within the group,it prefers to "covert route" which means providing guarantees for subsidiaries or other companies in the group to tunnel other than the "dominant route".Every 1%increase in the amount of guarantees provided by a listed company to a subsidiary's guarantee will increase the tunneling by 0.016%.For every additional 1%of the amount of guarantees provided by a listed company to other companies within the group will increase the tunneling by 0.053%.In addition,this paper also finds that the state-owned group's internal guarantees can inhibit the tunneling of 0.018%-0.033%,while the private group's internal guarantee will increase the tunneling by 0.074%-0.111%.Based on the above research results,this paper believes that the information disclosure system of related transactions should be improved,the related guarantees between the listed companies and non-parent companies belonging to the group should be paid attention,the related guarantees within the private group should be paid attention,and the rational allocation of financial resources and legal governance should be promoted.