Research On The Causes And Impacts Of The Forced Delisting Of Great Wall Films From The Perspective Of Corporate Governanc

In 2014,Great Wall Movies and Television successfully listed on the A-share market and became the first listed stock in the film and television industry.Until May 2021,the listing was terminated because the stock closing price was lower than 1 yuan for 20 consecutive trading days.The industry has sounded the alarm,so the root cause behind its delisting deserves indepth study and analysis.With the development of the capital market,corporate governance plays an increasingly important role in the development of the company,especially the company’s internal governance structure and external governance mechanism are closely related to the company’s operating performance.Based on this,the core research questions of this thesis are: What are the problems of Great Wall Movies’ corporate governance,how does it affect the company’s operating performance and financial indicators,and how will it eventually lead to the forced delisting of Great Wall Movies and the impact after the delisting.Starting from the Great Wall Movies and Television case,what suggestions can you give to regulators,listed companies and investors? This thesis sorts out these problems through the research method of case analysis,aiming to draw relevant suggestions and inspirations,in order to provide reference and reference for the future development of other companies with corporate governance problems and the sustainable and healthy development of the capital market.The case analysis shows that:(1)The problems existing in the internal governance structure of Great Wall Movies and Television mainly include the following four levels:shareholder level,board level,management level and supervisory board level.At the shareholder level,the ownership structure is too concentrated,and the controlling shareholder frequently pledges equity,which leads to a decline in the company’s solvency and an increase in financial risks;the unreasonable structure at the board level leads to the lack of independence of the board of directors;the management mainly reflects from two aspects.There are problems in the management of the company: first,the blind expansion of capital leads to unreasonable capital structure;second,the main business changes and lacks core competitiveness,which is reflected in the decline in operating capacity and profitability;the supervisory board level mainly has ineffective supervision,resulting in frequent occurrence of the company Violations of guarantees and major litigation events were not disclosed in a timely manner.(2)The impact of the company’s external governance environment on the delisting of Great Wall Movies mainly includes: lack of supervision by government departments,weak supervision by external audit institutions,and severe external market environment.The lack of supervision by government departments has led to the violation of Great Wall Movies and Television for many years;the ineffective supervision of external audit institutions and the frequent replacement of audit institutions by Great Wall Movies also reflect the internal operation and financial problems of Great Wall Movies;The impact directly led to a decline in the company’s operating income and net profit,reaching the delisting standard.At the same time,this thesis also analyzes the impact of the forced delisting of Great Wall Movies on the company itself,investors and the industry.Finally,based on the above research and analysis,this thesis puts forward the following countermeasures and suggestions: the regulatory authorities should improve the capital market exit mechanism,strengthen the information disclosure obligations of listed companies,and strengthen supervision;listed companies should improve their internal governance structure and strengthen the rationality of corporate financing;Investors should invest rationally,stop losses in a timely manner,and enhance their awareness of rights protection.The research significance of this thesis is that Great Wall Movies and Television,as the first stock in the film and television industry,eventually fell into a situation of delisting,and the fundamental reason behind the delisting is the key.This article analyzes the reasons from the perspective of corporate governance,in order to play a warning role in other companies with poor performance or ST shares in the market,and provide an effective governance mechanism,which can also enhance investor confidence and improve the vitality of market players.Promoting the optimal allocation of resources in the capital market is of great significance to the formation of a market ecological environment with the survival of the fittest and the orderly advance and retreat.