Analysis Of Diversified Operations,Over-Investment And Debt Crisis Of Private Enterprises

In 2018,under the background of the government's strengthening of financial supervision and the shrinking of credit scale,many enterprises have been reported to have defaulted on debts.Most of them are private enterprises,and Dun An Group has caught people's attention with 45 billion interest-bearing debts.Using the wind database to conduct simple statistics on companies that defaulted on bonds from 2014 to 2018,it was found that 77 of the 110 bond defaults were private,and nearly half of the 77 private companies adopted a diversified strategy.Therefore,it is necessary to explore the relationship between diversification strategies and the debt crisis of private enterprises.Theories related to diversification include principal-agent theory,investment efficiency theory and synergy theory.Under the principal-agent theory,the group's major shareholders or managers may choose a diversification strategy for selfinterested behavior.According to the investment efficiency theory,diversification may reduce the efficiency of corporate investment.Starting from the theory of synergy,enterprises should pay attention to the synergy between businesses when diversifying.Based on the above theories,this paper summarizes the current situation of the diversified operations of private enterprises and their debt crisis.And it's found that excessive investment may be the main cause of corporate debt crisis.However,after a detailed analysis of the main case of the paper about Dun An Group,the conclusion is that in addition to over-investment and external credit policy contraction,the reasons for the debt crisis in the implementation of diversification are as follows: the main business has limited growth and cannot provide strong support for the development of diversification;financial strategy is flawed;internal governance mechanism is not perfect.But these factors all influence debt crisis through overinvestment.Finally,combined with the whole case,the following enlightenment and suggestions are drawn: the government department should strengthen the policy support for the financing of private enterprises;enterprises should pay attention to the development of main business;the synergy effect can be better played around the main business;At the same time,we should do a variety of risk prevention and response work;enterprises should improve their internal governance structure.