| Bond financing is an important funds source for enterprises.China’s bond market is special – there is a “rigid redemption” phenomenon,basically no substantial default before 2014.This paper takes YT Company as an example to study the influencing factors of bond default.In theoretical part,based on the existing literature,the theoretical framework of the impact of related transactions and cash holdings on bond defaults is constructed.In the case part,this paper selects the YT Co.,Ltd.bond default.The company is the only privately-owned company listed in the coal sector.Finally,according to the analysis,the reasons for YB’s bond default are mainly due to the industry downturn,the company’s strategic layout is not scientific enough,the related transaction funds are occupied,and the cash holdings are small.In terms of industry and company strategic layout,it mainly analyzes the impact of the company’s coal business gross profit margin and the expansion of the company’s scale in recent years;in the related party transactions,it mainly analyzes the related guarantees and the associated funds to form the occupation of the company’s funds.The event research method is used to explore the market’s attitude towards large-scale related transactions.In terms of cash holdings,the cash flow of operations,investment and financing is mainly analyzed to reveal its impact on bond default.Under the joint action of related party transactions and cash holdings,the liquidity of the company’s assets is not good,and then it fails to pay on time when the funds need to be repaid,and the bond defaults.This paper has drawn inspiration from the internal financial management of the enterprise and the external investors and regulatory layers of the enterprise.It is hoped that it can provide a reference for enterprises to formulate development strategies and financial strategies,and provide reference for investors and regulators to identify bond default risks. |
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