An Analysis Of The Reasons The Delisting Of Zhonghong Stock Based On The Perspective Of Corporate Governance

On Nov.8,2018,the first stock in the history of A shares was officially born,which was "delisting with market value below par value".In the past,the shell resources of A-share market were precious,and fewer companies were forced to withdraw from the market,and the inefficiency of the delisting system also provided the possibility for enterprises to avoid delisting to a certain extent.The main quantitative indicators of delisting rules are net profit,revenue,net assets,closing price and turnover.Zhonghong Stock Company is the first company to be delisted because of the stipulation of triggering the closing price.It has received unprecedented attention.The corporate governance problem reflected behind its delisting is also one of the most common problems in China's capital market companies.Based on this,the core research questions of this paper are:corporate governance is divided into internal governance and external governance.From the two perspectives of corporate governance,the reasons for the delisting of Honghong shares are analyzed one by one.Starting from the case of Zhonghong shares,what inspiration does it bring to similar listed companies,investors and regulatory agencies?The following will analyze these problems by combing the cases.Studying these problems will not only benefit the survival and development of similar enterprises,but also have important practical significance for the healthy development of the current capital market.In the past domestic and foreign studies,the corporate governance of delisting companies is mostly studied through empirical research to explore which specific aspects of corporate governance defects caused delisting and the impact of corporate governance on corporate performance,not directly related to the relationship between corporate governance and delisting.In this paper,the highly distinctive Zhonghong shares as the research object will be enriched to a certain extent.Deposit relevant literature on delisting and corporate governance.This paper will focus on the core issue of "the real reasons for the delisting of Hongkong stock from the perspective of internal and external corporate governance".Taking the delisting phenomenon of Zhonghong stock as the research object,based on the theory of information asymmetry and stakeholders,and combined with the existing literature research conclusions,it will start the case study from three dimensions.Dimension 1:Analyzing the reasons for the delisting of Honghong Stock from the perspective of internal corporate governance mechanism;Dimension 2:Analyzing the reasons for the delisting of Honghong Stock from the perspective of external governance;Dimension 3:What thoughts does the delisting of Zhonghong bring to the enterprises,investors,creditors and other enterprises?The conclusion of this paper is that under the joint action of imperfect internal governance structure and negligence and indulgence of external governance environment,the final result of the forced delisting of Zhonghong shares by Shenzhen Stock Exchange is achieved.Taking Zhonghong Stock as an example,the study on how to improve the corporate governance structure may effectively alleviate the performance loss of similar performance-poor stocks,thereby avoiding delisting.Therefore,the study of corporate governance and delisting will have guiding significance for similar companies.The significance of this study is to analyze the reasons for the first listed company delisted in A-share market because of triggering the stock price to be lower than the par value index from the perspective of corporate governance,so as to play a warning role for the poor performance stocks or ST stocks in the market,provide effective governance mechanism to promote their development,and also have a general reference significance for promoting the optimal allocation of capital in the capital market.It is of great significance to enhance the vitality of the main body of the market,to enhance the confidence of investors,to cultivate the rational value investment concept,and to form an orderly market ecology characterized by the survival of the fittest and the elimination of the fittest.