Internal Risk Control Research On Bond Financing Of China’s Listed Company

With the increasingly deepening of market-oriented reform of interest, financial disintermediation becomes more and more conspicuous, and the direct financing of the real economy is in great demand. As an important means of direct financing, bond financing becomes more and more important. In the ordinary course of business of a listed company, financing is a difficult problem. Due to its advantages of non-diluted control power and tax shield effect compared to equity financing, as well as its advantages of large scale, stable and low financing cost of the raised capital compared to bank deposit, bond financing is adopted by more and more listed companies to raise fund.Under the background of complex and changeable international economic situation and slow down of domestic economy, some credit events emerged in the bond market and even the financial market in2012, such as trust plan was not cashed on schedule, and insolvency of issuer of bond, etc. Thanks to joint efforts of relevant parties, these credit events didn’t evolve into large scale financial risks. However, risk early warning is more important than the afterwards treatment.The establishment of internal risk control system is to guarantee the safety of a company’s assets, and ensure the accurateness and reliability of a company’s accounting data, so as to constantly enhance the operation and management efficiency of a company. By setting up an effective internal risk control system, a company can effectively evade and reduce risks in bond financing projects.This paper is expected to conduct research on the internal risk control of bond financing of listed companies in China, and analyzes existing problems and relevant reasons in internal risks control of listed companies in China with the focus on risks of bond financing. The paper includes five parts:Part one:Introduction. In this part, under the background of continuous development and innovation of China’s bond market, it analyzes the significance of research subject of internal risk control of listed companies in China on the condition of slow down of domestic economy, introduces domestic and overseas research literatures, and explores theses’content frames and research methods and their innovations and deficiencies.Part two:Relevant theories of internal risks control of bond financing of listed companies in China. It introduces relevant concepts and theories regarding internal control、 internal risk control and bond financing, as the theoretical guidance of discussion and analysis in ensuing parts.Part three:Analysis of current situation and existing problems of internal risks control of bond financing of listed companies in China. Through data reduction and qualitative analysis, it introduces the current situation of internal risks control of bond financing of listed companies in China, and analyzes existing problems in internal risks control system of bond financing of listed companies in China.Part four:International comparison and revelation of internal risks control of bond financing of listed companies. It introduces the construction and development of internal risks control system of listed companies in some developed countries, analyzes the successful experience of internal risks control in these countries at the aspects of controlled environment, risk assessment mechanism, information and communication, supervision mechanism, etc, and summarizes relevant revelations to improve the internal risks control system of bond financing of listed companies in China.Part five:Suggestions of improving the internal risks control system of listed companies in China. On the basis of comprehensive analysis of above chapters, it sets up fundamental principles in further improving the internal risks control system of bond financing of listed companies in China, and put forwards specific suggestions and supporting measures against existing risks in bond financing.