Research On Internal Control Of External Guarantee Of Listed Companies

With the development of the socialist market economy,the various economic businesses of enterprises are becoming more and more abundant,so the demand for borrowing and financing in the production and operation activities of enterprises is also increasing.However,in this process,the information held by both borrowers is often asymmetric,and the information held by the creditor is limited in quantity and quality compared to the debtor.Therefore,in order to ensure the safety of their own assets,the guarantee business came into being.Compared with ordinary companies,the reputation and solvency of listed companies are usually better,which can effectively assist the guaranteed company to reduce the cost of loans and protect the creditor’s rights of banks,which makes the external guarantee activities of listed companies more extensive..However,with the increasing scale of listed companies’ external guarantee business,some listed companies are gradually driven by interests,and problems such as over-guarantee and illegal guarantee are constantly exposed.Once the guaranteed company is unable to repay the loan due to poor management and other reasons,the listed company needs to help it repay the loan.At this time,the contingent liabilities of the guarantee company will become real liabilities,and various illegal guarantees may be further aggravated.The debt burden of a listed company can even adversely affect the company’s continuing operations and financial condition.Although the relevant departments have issued corresponding rules and regulations to reduce the occurrence of illegal guarantees to a certain extent,there are still many illegal guarantees in listed companies: guarantee applications have not been subject to approval procedures,no guarantee information has been disclosed externally,management The phenomenon of unauthorized misappropriation of the company seal occurs one after another,and the occurrence of such phenomena is related to the internal control of the enterprise.Guangdong Baibaolong Co.,Ltd.(hereinafter referred to as "ST Bailong")has a large amount of external guarantees and high risks in recent years,and all of them have been overdue so far.The company has accrued a large amount of estimated liabilities,and its guarantee business has a certain typical sex.Therefore,this paper selects ST Bailong as the case study object to carry out a series of research and analysis.First of all,this paper finds out various problems existing in the internal control of ST Bailong’s external guarantee by consulting a large amount of data: the guarantee review is a mere formality;the approval system is in name only;the seal management is invalid;the disclosure link is not timely,etc.Then,on the basis of summarizing the above problems,the reasons for the problems are analyzed from the perspective of the company’s internal control: the company’s governance structure is not perfect;the company’s external guarantee business risk awareness is weak;the company’s external guarantee key control activities are ineffective;the company lacks a special guarantee department The internal supervision is not in place;the company’s guarantee information disclosure system is not perfect;the penalties for violations of guarantees are small and the cost of violations is low.In addition,in view of the problems in the internal control of ST Bailong’s external guarantee,this paper also puts forward some suggestions: improve the corporate governance mechanism and strictly control the behavior of shareholders’ equity;improve the company’s risk assessment ability;strengthen the management of ST Bailong’s internal control activities in the guarantee business;Set up a special guarantee department to strengthen the company’s internal supervision;strictly implement the accountability system for information disclosure;strengthen the crackdown on illegal guarantees,etc.,hoping to provide reference for other listed companies.