Causes And Enlightenment Of Bond Default Of Tunghsu Optoelectronic Technology Co.,Ltd.

In recent years,with the continuous expansion of the domestic bond market,the credit risks in the bond market are also accumulating.Since 2014,risks have been concentrated,causing a wave of defaults in the bond market.The increasing of default events has brought great pressure to the prevention and control of systemic financial risks in China.At the same time,with the continuous development of social economy,the factors inducing bond default are complex and diverse,and the influencing factors of default in different periods present different characteristics.It is of great significance to study and analyze the causes of corporate bond default and put forward the enlightenment of how to prevent bond default,which is of great significance to ease the emergence of bond default risk and promote the steady development of China’s bond market.This paper selects Tunghsu Optoelectronic,the leading private enterprise in the photoelectric display material industry in China,as the research object,analyzes the reasons for the company’s bond default,and proposes enlightenment.First of all,based on the existing research and theoretical basis of the influencing factors and preventive measures of bond default,the background,basic situation of the company,bonds issued by Tunghsu Optoelectronic and their default situation are described,and the economic consequences caused by its bond default are analyzed.Secondly,through the construction of the cause analysis framework,from the external environment,ownership structure and corporate governance,corporate strategic decisions and financial risk control to explore the root causes of bond defaults.Finally,put forward the enlightenment of preventing bond default.Through case study,it is found that the occurrence of bond default of Tunghsu Optoelectronic is a dynamic process of risk factors accumulating and influencing each other.The change of external environment is the inducing factor of bond default,while the internal factors such as corporate equity structure,internal governance,strategic decision and financial risk control are the fundamental cause of corporate bond default.First,Credit conditions tightened on the back of deleveraging and increased industry risks lead to changes in the operating environment of companies,which aggravate the possibility of liquidity risks.Second,unreasonable ownership structure and governance system without effective checks and balances affect the formulation and implementation of the company’s overall strategy and functional strategy.A large amount of funds are invaded by major shareholders,which directly affects the redemption of corporate bonds.The company’s illegal guarantee further increases the business risk.Third,the radical diversified development strategy and improper financing decisions failed to promote the benign development of the company,but increased the financial pressure.Fourthly,the failure of strategic decisions leads to the rising financial risks,while the company fails to effectively control,resulting in the fracture of the capital chain and ultimately the occurrence of bond default.Combined with the causes of the default of Tunghsu Optoelectronic,this paper proposes that the company should timely track the external environment,improve the ownership structure and the level of corporate governance,pay attention to the cultivation of core competitiveness,prudently implement diversified expansion,optimize the financing structure,and strengthen financial risk control.