Analysis On The Causes And Consequences Of Default Of Super Short-term Commercial Papers In Boyuan Group

In essence,Super Short-term Commercial Paper is also an external financing tool,which is mainly manifested in the relationship between debt and creditor's rights.Compared with other general bonds,Super Short-term Commercial Paper has the characteristics of short term,simple procedures and high credit rating.More and more domestic listed companies begin to use ultra Super Short-term Commercial Papers as one of the main means to solve the short-term financial difficulties.With the introduction of super Super Short-term Commercial Papers,enterprises get more financing channels,but at the same time,the overall risk of the capital market is further increased.Due to the short history of the development of China's Super Short-term Commercial Paper,there are few studies on how to prevent and control the risks brought by Super Short-term Commercial Paper.Most of the existing studies are based on the theory of preventing bond default.In view of this,based on an example,this paper analyzes the causes and economic consequences of the default of the Super Short-term Commercial Paper by using the Super Short-term Commercial Paper to solve the short-term capital problem,and then the default occurs.This study can not only provide a reference for the causes and preventive measures of the default of Super Short-term Commercial Paper in China's capital market,but also help to promote the healthy development of the overall capital market.The research method adopted in this paper is to combine the basic theory of bond default with cases,and further study the problem of ultra short term financing bond default in China's capital market.In the theoretical part,firstly,this paper reviews the domestic and foreign literatures about the reasons for the issuance of Super Short-term Commercial Paper and the prevention of default,and analyzes the characteristics,issuance process,advantages and disadvantages of Super Short-term Commercial Paper in China's capital market.In the case part,this paper takes Inner Mongolia Boyuan Holding Group Co.,Ltd.as an example,analyzes the internal and external causes of the default after the issuance of Super Short-term Commercial Paper,as well as the economic consequences after the default.The case study shows that:(1)the defect of risk control system of super short term financing bonds is the main reason for the default of super short term financing bonds of Boyuan group,(2)the change of macro environment will further promote the default of super short term financing bonds of Boyuan group,(3)the default of super short term financing bonds of Boyuan groupfurther increases the cost of funds,(4)the default of super short term financing bonds of Boyuan group damages the cost of funds Shareholder wealth.In view of this,this paper puts forward some suggestions to prevent the default of Super Short-term Commercial Paper:(1)maintain the good financial situation of the enterprise itself,(2)establish the sharing mechanism to deal with the default of Super Short-term Commercial Paper,(3)strengthen the supervision of the issuer of Super Short-term Commercial Paper by the government.This paper is divided into five chapters: the first chapter is the introduction.In the first chapter,it points out the research background and significance of this paper,and then leads to the reasons for the topic.After the introduction of the problem,this paper reviews the literature about the default of Super Short-term Commercial Paper at home and abroad.This paper reviews the existing research on the issue motivation,default reason and how to prevent the default of Super Short-term Commercial Paper,and further puts forward the research ideas and methods of preventing the default of Super Short-term Commercial Paper.The second chapter is the theoretical overview,mainly from the theoretical point of view of the Super Short-term Commercial Paper.This chapter first introduces the related concepts and characteristics of Super Short-term Commercial Paper.Then it discusses and interprets the main body,process,scale and term of the issuance of Super Short-term Commercial Paper.Then it analyzes the reasons of default of Listed Companies in the capital market after issuing Super Short-term Commercial Paper.Finally,the paper expounds the relevant theories of corporate financing in China's capital market,including MM theory,signal transmission theory,financing priority theory,etc.,which provides a theoretical basis for how to prevent the default of ultra Super Short-term Commercial Papers.The third chapter is the introduction of Inner Mongolia Boyuan Holding Group Co.,Ltd.This paper first introduces the basic situation of Boyuan group,then introduces the specific situation of Boyuan group's issuance of Super Short-term Commercial Paper,including the introduction of the issuance scale,price,term,interest rate,etc.,and finally introduces the situation of Boyuan group after the default of Super Short-term Commercial Paper,including the introduction of the default amount,default process and default penalty.The fourth chapter is the analysis of the causes and consequences of the default of Inner Mongolia Boyuan Holding Group Co.,Ltd.This chapter mainly analyzes the external and internal causes of the default of Boyuan group's Super Short-term Commercial Paper,and analyzes the impact of the default of Inner Mongolia Boyuan group's SuperShort-term Commercial Paper from three aspects: credit rating,corporate liquidity and shareholder wealth.The fifth chapter is the conclusion and Enlightenment of Inner Mongolia Boyuan group's ultra short term financing bond default.Combined with the previous theory and case study,the paper draws relevant conclusions,and summarizes how to prevent the default of Super Short-term Commercial Paper,which is conducive to the healthy development of China's capital market.