Analysis On The Causes Of Bond Default Of Jingzhoucihang From The Perpective Of Liquidity

Bond issuance is an important means of external financing for enterprises.In this process,the occurrence of bond default events leads to the rise of bond market risk.In2019,the bond market entered a high default period,with the number of newly involved default issuers and the amount of default involved exceeding the level of previous years.This paper takes Jinzhou Cihang company as an example,and studies the causes of bond default in 2019.This paper summarizes the influencing factors of bond default by referring to and studying the relevant researches of domestic and foreign scholars on bond default and liquidity risk.Combining theory with practice,through quantitative and qualitative analysis,we find that the identification of liquidity risk of Jinzhou Cihang is lagging behind,its use of monetary capital is limited,inventory turnover rate is low,overdue rate of accounts receivable is high,debt surge after merger and acquisition,and the total physical quantity of assets is declining seriously.The liquidity risk management and control of the enterprise is poor,and the profit scale of the three main businesses is reduced,among which the gold business is impacted by the financial business,the financial leasing business customer industry is centralized,the cost increases,and the principal-agent business has a high rate of exceeding the contract and the cost increases.At the same time,the reputation of enterprises is analyzed,and the influence of negative reputation on enterprises is analyzed based on signal transmission theory.The quality of assets and profitability of the enterprise lead to the decline of cash holdings,which leads to the liquidity risk of the enterprise.There are some problems in its financing liquidity and asset liquidity,that is,the enterprise's own assets are insufficient,the credit line of bank financing channel is overdrawn,and the financing channel cost of non bank financial institutions is high.The liquidity risk of the enterprise eventually leads to the failure to cash the capital when it is needed to repay the principal and interest,which leads to bond default.This paper puts forward countermeasures to improve the liquidity of enterprises from three aspects: the disposal of own assets,the expansion of financing channels and the improvement of profit level.This paper puts forward suggestions from the perspectives of internal corporate governance and external regulatory rating,including merger and acquisition decision-making,capital flow,information disclosure,rating system,etc.I hope this paper can provide reference for enterprises to make development strategies and financial financing decisions,and create a good reputation atmosphere for enterprises.At the same time,I hope relevant departments can improve the information disclosure mechanism and jointly promote the overall value of enterprises.