Analysis On The Causes Of Debt Default Of Shengyun Environment-protection Company And Countermeasures

In 2014,credit risk events in China’s bond market broke zero for the first time.Today,the phenomenon of debt default continues to ferment,private enterprises become the default "disaster area." Such a concentrated outbreak of debt default is,to some extent,the inevitable pain under the situation of deleveraging,which is the symbol of breaking rigid payment in China.The impact of a default on the financial markets,the industry,debtors and investors as a whole cannot be ignored,given the possible cascading and long-term effects.Therefore,in this context,it is of great practical significance to dig out and summarize the reasons for default,and then provide some reference for other relevant enterprises to prevent and control and deal with risks.According to the characteristics of the overall situation of debt default in China,the environmental protection private listed company shengyun environmental protection debt default event is taken as the case study object.The adverse impact caused by default leads to the deterioration of the company’s performance and challenges to its sustainable operation,which has attracted the attention of the whole industry and the financial market.In credit risk,information asymmetry and financial risks under the guidance of theoretical basis,from the macro environment level,industry level,financial level,and the internal control level four angles,combined with the announcement of annual reports,company as well as the internal control evaluation report,integrated use of literature research,case analysis,qualitative and quantitative analysis,to dig deeper into the reasons behind the debt default,and based on the integrated thinking to explore how lofty environmental debt default.Research conclusion: the macro environment and the risks brought by the industry background are the external and indirect causes of debt default.The company’s own financial risk and the lack of internal control are the internal reasons and fundamental factors.The essence of debt default is the exhaustion of cash flow,which is the result of the deterioration of the company’s financing ability,profitability and debt paying ability caused by various factors,resulting in the cash flow exceeding its income.Among them,the economy is facing downward pressure,the industry’s own limitations and the company’s transformation is not ideal,resulting in a decline in profitability;The financing environment under the deleveraging has aggravated the difficulty of corporate financing.Strategic radical,accounts receivable accountingestimates are unreasonable and short borrowing and long investment,resulting in a high level of corporate debt,debt repayment pressure.At the same time,there are serious defects in the internal control,"a single dominant",the internal control system is in vain to aggravate the exhaustion of the company’s cash flow.In addition,during the research process,it is found that the z-value model has a warning effect on the debt default risk,which can give early warning to the enterprises that are involved in the default crisis and indicate the risk points.Finally,based on the above research conclusion,the implicit default risk of the enterprise to provide effective risk prevention measures,to make it in time for early warning and risk prevention and control,as well as the relevant regulatory authorities and industry put forward reasonable Suggestions,help enterprise to reduce the probability of default,the stable benign development for the enterprise to provide the advantageous safeguard.Among them,the regulatory authorities should actively play a regulatory role,solve the financing difficulties of enterprises,prevent and control and disperse market credit risks;Trade associations should play an active role in strengthening the self-discipline of the industry;Enterprises themselves should establish a risk early warning mechanism,regularly assess the default risk,formulate corporate strategies according to the actual situation and take the initiative to de-leverage,control the total debt at a reasonable level,actively optimize internal control,make a good combination of financing,and increase their participation in the industry.