Research On The Impact Of Corporate Governance In Coal Enterprises

In recent years,bond defaults broke out frequently.In 2018,123 public debt defaulters were involved,and the amount of defaults was higher than the sum of the past three years,reaching 100 billion.The increasingly difficult market for financing has brought more negative impacts to the company.In addition to the economic downturn,the company's performance level is low,which makes the default risk of the already heavily indebted company greater.Serious overcapacity problems in industries that have repeatedly been involved in defaults,such as coal,steel,cement,flat glass and other industries,have attracted widespread attention.Among them,the debt pressure of coal industry is most obvious under the background of Supply-side Structural Reform,and the problem of debt default of coal Enterprises represented by Sichuan Coal Group is even more prominent.As the only company among coal enterprises and state-owned enterprises that has issued bonds eight times in a row for three years,the reasons behind Sichuan Coal Group's deep bond default are worth studying.During the development of the whole incident,Sichuan Coal Group could not find a reasonable solution at the same time that it was unable to pay.Investor prosecution and the downturn in the industry promoted the company's wrong investment decision and information asymmetry.Under the background of low performance level,centralized maturity of bonds and huge default risk,the company still tried to repay old debts with new debts,vigorously developed new mines and integrated small mines,resulting in the formation mechanism and influence effect behind the rising debt scale and other phenomena worthy of study.At present,the researches on bond default events in China mostly focus on the regulatory system,rating agencies,industry environment,bond pricing and other aspects to explore the relevant influencing factors of bond default.Academic circles also have researches on measuring default risks through credit risk models,and lack researches on the relationship between corporate governance and bond default from the perspective of specific defects of corporate governance.Based on the analysis of typical cases,this paper discusses the current corporate governance defects in Sichuan Coal Group from the three governance levels of governance structure,investment decision-making mechanism and information disclosure.The conclusion shows that corporate governance defects will indeed lead to low corporate performance and accelerate corporate bond default.On the basis of this conclusion,the paper puts forward measures to improve corporate governance.At the same time,it combines domestic and foreign theoretical and practical experience in dealing with bond default issues,and makes comparative suggestions suitable for China's current bond risk management.Through this article,I hope I can provide meaningful analysis and investment advice to bond investors,pay attention to the corporate governance of the invested companies,and better safeguard their rights and interests by using relevant protection mechanisms.It is also hoped that the issuing companies will pay more attention to the decision-making on the use of the raised funds and make reasonable arrangements for the company's debts.