Research On Financial Crisis Of ST Jing Gang Based On Real Controller’s Encroachment

Corporate governance and the sound development of enterprises are closely related to the microeconomic dynamics of a country.The interest encroachment of the actual controller is an urgent problem to be solved at the corporate governance level.However,some of the actual controllers of listed companies are driven by the interests of the regulatory loopholes,using a lot of direct or indirect ways to encroach on the benefits of the listed companies,and ultimately make the financial situation of the companies worse,resulting in financial crisis.In 2019,ST King Kong Company was faced with a debt crisis.It was necessary to pay attention to the fact that Many of the estimated liabilities of Henan Diamond are not due to the excessive demand for direct funds from Henan itself,and most of the funds do not flow to listed companies.The listed company Yu Diamond or has become the actual controller and its associated “Hua Jing system” of the money grab machine.It goes without saying that the important person is not only the actual controller of the company,but also the legal representative and chairman of the board of directors.Henan diamond and the actual controller control of Henan Hua Jing and other “Hua crystal”enterprises between most of the relationship between mutual insurance.Therefore,in the case of financial crisis of ST King Kong Company,it is necessary to study financial crisis from the perspective of interest encroachment of actual controller.First of all,the paper inquires the related literature about the financial crisis and the actual controller’s encroachment behavior,and obtains a lot of theoretical concepts that are beneficial to the thesis writing.Then it analyzes the motives,ways and consequences of the interest encroachment of the actual controller of Henan Diamond,and then further analyzes the financial crisis of the diamond in Henan.From the profitability,solvency,operating capacity and cash flow capacity of several specific Yu diamond financial crisis financial situation.Finally,how to better curb the actual controller and major shareholders of interest encroachment countermeasures,such as the establishment of equity checks and balances mechanism,Optimize the equity structure and other measures,in addition to the above financial crisis performance and situation,in the follow-up according to the current situation of the company proposed corresponding financial crisis response strategies,such as appropriate equity financing,strengthen accounts receivable capacity,improve inventory turnover speed and other strategies.This paper analyzes the root causes of financial crisis from the perspective of finance and governance,and explores how the enterprises take measures to curb the behavior of interest encroachment.Yu diamond in the financial crisis can provide some advice,but also for the company in the same situation to provide experience,for no financial crisis companies on how to prevent financial crisis to give the corresponding reference and reference.