Study On Bond Default Reasons Of Listed Companies

For a long time,the bond market has been weakened due to the short-term exchange,and has been downplayed by investors.However,the 2014 Shanghai Chaori bond default breached the originally calm bond market.The just-converted beliefs,state-owned enterprise beliefs,and high-rated beliefs were broken one after another.Then the company's credit risk began to erupt,and bond defaults intensified.Especially in 2018 and 2019,not only the scale of bond defaults has increased significantly,but also new features have emerged.That is,many listed companies have also experienced defaults in succession,including some of the old star companies.Therefore,scholars have begun to study the issue of bond defaults,but previous studies have conducted empirical research based on the entire credit bond market,analyzing macro-,industry,and company-level influencing factors.Few studies have been conducted in conjunction with actual default cases.Therefore,this article combines the new characteristics of the bond market default,and raises the research question of this article,that is,what is the reason for the listed company's bond default?This article combs the bond default events from 2014 to 2019,uses statistical analysis to summarize the characteristics of the bond default market,and then analyzes the reasons for the default of 31 listed companies in 2018 and 2019,and selects typical cases on this basis-—Wintime Energy conducts research to thoroughly discuss the causes of the default of listed company bonds.The research conclusion of this paper is that the deterioration of profitability,the decline in solvency,and the difficulty of refinancing are the three main reasons for the default of listed company bonds.Specifically,the downturn in the macro economy and the industry 's capacity reduction have put pressure on the company 's operations,which has been superimposed on the company 's aggressive expansion,and diversified investment is unfavorable,which has led to insufficient hematopoietic capacity and plunged into losses.In addition,listed companies are heavily indebted,assets are limited,related party funds are occupied,receivables are difficult to recover,and poor financial management has led to weak liquidity and reduced solvency of the company.Under such circumstances,China is faced with strict financial supervision,shrinking financing channels,and a large proportion of large shareholder equity pledges.It is also difficult to get assistance from the "white knight".The progress of its own asset disposal is slow,so it can no longer raise new funds.The superposition of these three factors led to the breaking of the company's capital chain,and substantial bond defaults occurred.Generally speaking,the overall quality of listed companies is higher,and financing channels are more extensive.Once listed companies start to default,it means that credit risk already exists.The default of listed company bonds will not only damage the interests of the majority of investors,but also affect the company's production and operation,causing the company to delist or go bankrupt.Therefore,it is of great practical significance to study the causes of bond defaults of listed companies.At the end of this article,combined with the reasons for the default of listed companies' bonds,the issuers,investors,and regulators are respectively advised to prevent the risk of bond defaults,hoping that all market players can work together to build a healthier bond market.