Analysis Of The Causes And Consequences Of Listed Company Bond Default

With the rapid development of science and technology and the increasing diversification of people’s production and lifestyle,environmental issues have become more and more illustrious.Among them,global warming,air pollution,water pollution,land desertification and other issues are particularly prominent.Another "garbage siege" that has been neglected in the development.In recent years,the issue has also attracted much attention from all social circles.Harmless,resourcebased,and reduced-quantity treatment is needed,and the waste incineration power generation industry has emerged as the times require.However,some waste incineration power generation companies rely on policy dividends to adopt a blind and radical development strategy,which has caused the company to have serious financial chain breaks and even endanger the company’s normal production and operation activities.Shengyun Environmental Protection Co.,Ltd.completed its business transformation in 2014.Its main business changed from production,sales and transportation machinery to BOT franchise model to invest,build,and operate municipal solid waste incineration power generation projects.In 2015,the company’s market value reached 17.3 billion yuan,been an environmental protection star stock,but in 2016-2017,the company won two bids each month at a low price.It expanded its debt blindly and took up a lot of funds.In 2018,the company broke out in a serious debt crisis after bond default incidents occurred frequently.What are the reasons for star stocks becoming junk stocks,and what impact will the company have afterwards,and can the related risks be controlled beforehand? This article combines the Harvard analysis framework,event research method,and Z-score model to analyze the above problems one by one,hoping to provide valuable suggestions for the future stable and healthy development of the domestic waste incineration power generation industry.Through research,it is found that the main reasons for the company’s bond defaults are radical development strategies,outstanding short-term debt and long-term investment issues,and low contribution of operating activities to the company’s cash flow.The performance of refinancing,the abnormal return rate of the company’s stock after the occurrence of a default event,is derived from the event research method,indicating that the company’s refinancing environment is poor.Finally,according to the Z-value analysis,the company’s Z-value was below 2.675 in 2015,and financial risks have begun to take shape.Therefore,the dilemma facing the company can be controlled beforehand.The innovations of this paper are: choose the first company in the domestic waste incineration power generation industry to perform a case study,which has a strong reference value for the overall development of the industry;In addition,this article comprehensively uses the Harvard analysis framework,event research method,Z-meter The sub-model not only reveals the root cause of bond defaults,but also points out the role of the company’s financial difficulties in production process.So this article can further enrich the content of bond research.