Seeing Shenwu Environmental Protection Company's Bond Default From The Perspective Of Ownership Structure

The bond market plays a very important role in China's financial market.Over the years,China's bond market has achieved long-term development,but the disadvantages and risks of the bond market have gradually emerged at the same time as its development.On March 4,2014,the default of the "11 Super Japanese Bonds" became China's first default public offering bond.Since then,China's bond market has broken the government's rigid payment situation,and more and more bonds have defaulted.On March 14,2018,the "16 environmental debt" had a substantial default.Shenwu Environmental Protection Co.,Ltd.became the first company in the environmental protection manufacturing industry to default in China's securities market,which has very typical research and reference significance.This article uses the "16 environmental debts" defaults of Shenwu Environmental Protection Co.,Ltd.as the research object,because most of the articles are about the various possible causes and consequences of a company's bond defaults,and specific reasons for a certain aspect The impact path has not been discussed and studied in detail.Therefore,this article uses the case analysis method to specifically study the impact of the company's equity structure on corporate bond redemption.The article first discusses other reasons that may cause the Shenwu Environmental Protection Company's bond default in addition to the company's equity structure.In the discussion,it is divided into industry factors and company internal factors.At the industry level,this article believes that the immature development of the environmental protection equipment manufacturing industry,the decline in the ability of high-energy-consuming companies to sustain development,and the inherent limitations of the EPC model have led to Shenwu Environmental Protection Company's bond default.Single,not conducive to all-round development,long sales repayment time,poor flow of funds,significant decline in accounts receivable,decreased profitability,poor short-term debt solvency,increased financial risks and insufficient cash flow in daily activities,making it difficult to maintain daily Problems in operation and other aspects led to Shenwu Environmental Protection Company's bond default.Then the article analyzes the default behavior of Shenwu Environmental Protection Company's bonds.This article first analyzes the company's equity structure.It believes that Shenwu Environmental Protection's excessive concentration of equity and the lack of effective equity checks and balances have led to related party transactions Frequent,excessive investment by the company,large guarantees provided by the company's controlling shareholders,and a high proportion of the company's controlling shareholder's pledge of equity are all important behaviors of Shenwu Environmental Protection Company.It proves that Shenwu Environmental Protection's equity structure has a more important impact on its bond redemption.Finally,this article puts forward measures to improve the company's equity structure.It is believed that by adjusting the equity structure,it can be moderately concentrated,develop institutional investors,promote management shareholding and employee shareholding,improve related systems,and play the role of independent directors The method further improves the company's equity structure,which is more conducive to the corporate governance and the company's daily development.It also provides some support and reference for the healthy and stable development of China's bond market in the future.