Tax cost
Before the listed companies were restructured into joint-stock companies, there was a widespread problem of paying a large number of taxes. In general, the main reasons for enterprises to pay less taxes include:
1, corporate financial personnel information and business reasons lead to tax underpayment. For example, some accidental taxable businesses did not declare tax; Inconsistency between taxation and finance in taxation basis often leads to failure to declare and pay taxes in accordance with tax regulations.
2, financial management is not standardized, income recognition, costs and expenses, etc. Failing to comply with the provisions of the tax law, resulting in less tax payment. This phenomenon generally occurs in the early days of the establishment of enterprises, especially when the tax authorities levy taxes on enterprises on a small scale, and many enterprises are not strict with the cost and expenses, resulting in a large number of invoices that are not in compliance with regulations and white stripes. Once these situations are mastered by the tax authorities, the tax authorities have the right to require enterprises to pay taxes and impose penalties.
3. Improper handling of related party transactions often leads to huge tax costs. The new income tax law and special tax adjustment management measures put forward very clear normative requirements for related party transactions. If the pricing is obviously low, the tax authorities have the right to investigate the related transactions of related enterprises. Once it is confirmed that the related party transactions affect the underpayment of taxes, the tax authorities may decide to implement special tax adjustment.
Social security cost
In labor-intensive enterprises, there is often a problem of irregular employment. For example, reducing the social security base, underreporting the number of employees, replacing urban social security with comprehensive insurance, underestimating overtime pay, underestimating holiday pay and so on. The IEC has extremely strict requirements on the employment of enterprises, so the companies to be listed will generally pay higher social security fees.
Listing preparation fee
The preparation for listing is a systematic project, which not only requires all functional departments to improve their management level according to the standard requirements of listed companies, but also requires the establishment of a professional preparation team to organize and coordinate the whole preparation for listing. Therefore, the cost of listing preparation is also a cost factor that enterprises must consider. The expenses of listing preparation mainly include: the labor costs increased by the listing preparation team and various departments to strengthen management; Training expenses for corporate governance, system standardization and process reengineering; Management expenses increased to strengthen internal control norms, etc.
Remuneration of senior managers
The wealth effect of capital market makes it necessary for enterprises to consider the salary of senior managers in the process of listing decision. In addition to the fixed salary of executives, we should also consider the incentive policies for executives that are in line with the company's development strategy. Generally speaking, the fixed salary of executives will not bring incremental costs because of the listing of enterprises, but the incentive policies of executives often become high human resources costs of listed companies. Because in the market environment, most enterprises will use executive stock ownership plan or option plan as the main incentive means for senior managers.
For small and medium-sized private enterprises, the executive compensation that needs to be considered in listing is sometimes manifested as the increase of executives. In order to meet the requirements of corporate governance, most small and medium-sized private enterprises have to arrange more directors, members of the board of supervisors and senior managers.
brokerage fee
The listing of enterprises must be realized through the cooperation between enterprises and intermediaries. Under the umbrella of market access, intermediary services become scarce resources, making intermediary fees one of the main listing costs. The necessary cooperative intermediaries for enterprises to go public include brokers, accounting firms, asset appraisal institutions, law firms, other consulting institutions and financial public relations institutions. The level of agency fee depends on the agreement between the two partners, and its main influencing factors include the target financing amount, the scale and brand of the partner, the business complexity determined by the basic situation of the enterprise, and the market situation. Part of the agency fee can be delayed until the fund-raising is successful.
Marginal operating cost after listing
While listing brings brand effect and credit upgrade to enterprises, it also brings the problem of "tired name" to enterprises. For example, the cost of human resources will increase because the enterprise is a listed company, because there are more high-quality talents coming here, and job seekers have higher requirements for the salary and treatment of the enterprise. For another example, the procurement cost will increase because the enterprise is a listed company, because some suppliers will raise the price because the enterprise is a listed company. Therefore, the operating cost of general enterprises after listing is higher than that before listing. Considering the marginal operating cost after listing is helpful to the listing decision and development strategy of enterprises.
risk cost
The biggest risk faced by enterprises in listing decision-making is that the listing declaration will not pass the IEC in the end, which means that the listing of enterprises will fail. This kind of failure will bring many threats to enterprises. Strict information disclosure requirements make the company's basic operating conditions public and give competitors an opportunity to understand. In addition, intermediaries also hold a lot of important information of enterprises, and they are also facing the risk of loss. The failure of listing also makes the previous tax costs, social security costs, listing preparation costs, intermediary costs and other costs become sunk costs, which can not be made up in a short time.