Guirenniao Company Credit Bond Default Case Study

Since the first bond default in the Chinese market in 2014,the number and scale of credit default have been increasing year by year,causing huge losses to enterprises and investors,and attracting the attention of more and more experts and scholars.From the perspective of issuers,credit default reflects the excessive credit risk of the company and the inability of the company to repay the principal and interest.This paper aims to study the method of enterprise credit risk assessment and the causes of corporate credit default through the case of Guirenniao co.,LTD bond default.The CRITIC-TOPSIS method is a comprehensive evaluation method that objectively weights the evaluation index,creatively defines the positive and negative ideal solutions of the decision problem,and then compares the advantages and disadvantages of each solution according to the distance between the solution and the ideal solution.There have been a few studies that have applied the CRITIC-TOPSIS method to comprehensive evaluation of management science.This paper attempts to study the application of CRITIC-TOPSIS method in the field of enterprise credit risk assessment.In this paper,listed companies that have defaulted on credit bonds since 2014 are selected as the case companies with high credit risks,and the normal companies with similar market values in the same industry when the defaulted companies default are selected as the case companies with low credit risk,constructing credit risk evaluation system to calculate them.It is found that after calculating by the CRITIC-TOPSIS method,the default company can be distinguished from the normal company.Preliminarily verify the effectiveness and applicability of CRITIC-TOPSIS method in the field of credit risk assessment of listed enterprises.Combined with the conclusion of the last chapter,this paper analyzes the bond default risk of Guirenniao co.,LTD in the past 10 years.This paper selects the financial data of enterprises in recent 10 years to evaluate the credit risk level of guirenbird company in recent 10 years,and finds that the financial risk of Guirenniao co.,LTD has significantly increased since 2018.Then,through case study,the author analyzes the reasons for the obvious increase of credit risk of Guirenniao co.,LTD and gives relevant Suggestions.The study of this paper can provide experience and reflection for the credit riskprevention and response of Chinese enterprises,broaden the methods and cases of enterprise credit risk research,and also verify the reliability of the CRITIC-TOPSIS method in the field of enterprise credit risk.