Research On The Liquidity Risk Of Private Enterprises In Related Mergers And Acquisitions

In recent years,with the expansion of the credit bond market,a large number of "3+2" and "2+1" maturity structures have been issued in the corporate bond market since 2015.However,the current macroeconomic environment continuously emphasizes "deleveraging and strict supervision",which makes a large number of enterprises relying on credit debt financing begin to appear liquidity problems.Among them,a large number of corporate bond defaults occur in private companies,which are mostly caused by "excessive investment" and "excessive leverage".For a long time,connected transaction is one of the important factors that lead to the difficulties of private enterprises in China.Associated mergers and acquisitions always occupy a large amount of enterprise liquidity.Most of these companies' main businesses are weak,with slim profits and even losses.On the other hand,they have large-scale construction investment spending,making the enterprise liquidity is very tight,in the edge of cash flow.This paper starts with the previous research literature,and firstly sorts out the literature of private enterprises,related mergers and acquisitions and liquidity risk.It is found that up to now,there are few studies on the liquidity risk of private listed companies under the connected m&a.This paper starts with the literature and sorts out the relevant theories.Then it evaluates the overall liquidity risk of listed private enterprises in a large sample and analyzes the reasons for its formation.Then,based on the specific case of Kaidi ecology,principal component analysis method was used to conduct quantitative evaluation on the liquidity risk of Kaidi ecology in the past 18 years from the perspective of individual cases,and the causes of risk formation and change were analyzed according to specific cases.Finally,the author puts forward some ideas and suggestions from two aspects of macro policies and corporate governance.In the past,scholars mainly focused on related mergers and acquisitions or enterprise liquidity,so the author decided to use the new entry point of liquidity risk change in capital expansion of private enterprises under related mergers and acquisitions in combination with the economic development situation in recent years.On this basis,the paper adopts the structure of "large sample + typical case" to carry out research.Then,the paper classifies 2112 private enterprises according to whether related party transactions have occurred in the past 15 years,and analyzes their changes of liquidity risk,found a link between mergers and acquisitions of private enterprises in financing disadvantages compared with other types of enterprises,leading to problems such as large funding gap.On the other hand,the author has thoroughly and completely explored the causes of liquidity risk under the case company – Kaidi's association merger and acquisition.The change of liquidity risk in the last 18 years was quantitatively evaluated by establishing the index system.Finally,combined with the changes of enterprise operation and macro environment,it explains the reasons for the changes of Kaidi's ecological liquidity risk around the related mergers and acquisitions.However,limited by the ability of data collection,this paper is limited to listed companies.At the same time,the theoretical research of the paper is a little weak,unable to make enough innovation on the liquidity risk quantification method,these are the future needs to continue to pay attention to and efforts.