Research On The Corporate Governance Mechanism Of Great Wall International ACG In The Context Of New Delisting System

On December 31,2020,the Shanghai and Shenzhen Stock Exchanges released the "Shanghai/Shenzhen Stock Exchange Stock Listing Rules" and the "Shanghai/Shenzhen Stock Exchange Science and Technology Version Stock Listing Rules"(hereinafter collectively referred to as the new delisting system),which further reduce the value of "shell resources" and increase the pressure on listed companies to delist,and make the competition in the capital market increasingly fierce.In 2014,Great Wall International ACG was successfully listed on the A-share shell,becoming the third listed company of the Great Wall family,with the strategic goal of building "China Disney".However,the shortcomings of the corporate governance mechanism led to the final delisting of Great Wall International ACG in April 2022 due to the violation of the new delisting system,which sounded an alarm to the whole animation industry.Therefore,how to improve the corporate governance mechanism and reduce the delisting risk under the new delisting system deserves in-depth study.Based on this,this paper analyzes how the deficiencies of governance mechanism led to the final delisting of Great Wall International ACG from the perspective of its financial situation and corporate governance level before delisting.And based on the analysis of the governance mechanism of Great Wall International ACG,it provides suggestions for regulators and enterprises in the same industry to improve the corporate governance mechanism.The research results of this paper show that(1)Great Wall International ACG lacks profitability,solvency,operating capacity and development capacity.Its operating income is always declining,and the company basically loses its "blood-making" ability.The gearing ratio is always greater than 50%,and the highest value of quick ratio is also less than 1.The company was heavily indebted before delisting,but its solvency is extremely poor.The Z-Score value and Economic Value Added(EVA)are selected to measure the development ability of the company,and the results show that the Great Wall International ACG lacks value creation ability and is always facing high risk of bankruptcy.(2)One of the reasons for the delisting of Great Wall International ACG lies in the deficiency of governance level.Therefore,principal component analysis is used to quantitatively measure the governance level of Great Wall Animation in terms of incentives,supervision and decision making.Since 2015,the governance level of Great Wall International ACG has always been lower than the industry average at a lower level,and there are major problems with corporate governance,which is related to the deficiencies of corporate governance mechanism.(3)The main reason for the lack of corporate governance level of Great Wall International ACG is the deficiency of corporate governance mechanism.It is specifically manifested as the lack of incentive mechanism,the failure of supervision mechanism,the failure of agency competition mechanism and takeover mechanism.Great Wall International ACG has not formulated corresponding incentive mechanism to prevent personnel turnover,which leads to its loss of core competitiveness.The failure of supervision mechanism makes the company frequently violate laws and regulations,which seriously infringes the rights and interests of small and medium shareholders.The failure of the proxy competition mechanism and takeover mechanism fails to form effective constraints on the executives.(4)This paper makes the following suggestions for regulators and companies in the same industry in the context of the implementation of the new delisting system: develop reasonable incentive mechanisms to retain talents,improve the effectiveness of the supervision mechanism to monitor the behavior of major shareholders and the overall operation of the company,and regulators should strengthen the institutional construction of the proxy competition mechanism and the takeover mechanism to improve their role in corporate governance.This paper analyzes the reasons for the delisting of Great Wall International ACG from the perspective of corporate governance mechanism and provides effective improvement measures for regulators and companies in the same industry in the context of the implementation of the new delisting system.In this way,investor confidence is enhanced and the vitality of market players is improved.