Research On The Influence Of Corporate Risk Taking On Debt Default

A sound multi-level capital market system can not only expand the capital coverage,but also improve the ability of China’s financial industry to serve the real economy,so it is of great significance to China’s economic development.As an important part of this system,although China’s bond market is huge in scale,the proportion of bond balance in GDP is not high,so there is still great room for development.After the "super Japanese debt" event,China’s debt default gradually becomes normalized,and debt default events occur frequently.In this critical period,more abundant theoretical and case studies are needed to enrich the research in the field of debt default in China and guide the future better development of China’s bond market by summarizing experience.From the perspective of corporate risk taking,this paper aims to study the impact of corporate risk taking on debt default by taking the most eye-catching default crisis of dun ’an group in the first half of 2018 as an example and adopting the methods of literature research and case analysis.First of all,through the analysis of the shield security incident,this paper believes that the main reasons are irrational diversification expansion,chaotic management arrangements and internal governance,as well as slow response to changes in the external environment.Secondly,the volatility of ROA is used to measure the risk level of an enterprise,and the bp-kmv model and z-score model are also used to measure the risk of debt default.Although the bp-kmv model can accurately measure the debt default risk of dengan group,the data it USES are mainly from the credit rating report,which is obviously different from the financial statement data used by the enterprise for risk taking.Therefore,in order to better study the impact of corporate risk taking on debt default,it is necessary to introduce the z-score model and verify it with the accuracy of bp-kmv model,so as to avoid the negative impact caused by the data distortion of financial statements.Then,it summarizes the influence path from corporate risk taking to debt default,and analyzes the influence of corporate risk taking on debt default.Finally,by summarizing and analyzing the results,it can be found that external factors,internal factors and characteristics of decision-makers can all affect the debt through corporate risk taking.An increase in the risk level of an enterprise within a certain range is conducive to the rise in the value of the enterprise,thereby reducing the risk of its debt default;Once the range is exceeded,the increase of corporate risk taking will promote the accumulation of corporate financial risk,increase the risk of corporate default,or even directly cause debt default.Based on the above conclusions,this paper suggests that domestic enterprises carefully choose diversification strategy to strengthen their internal governance mechanism construction,and further improve the bond market information disclosure system and credit rating mechanism,so that it can better play its role and promote the maturity of the whole market.