Research On The Causes And Prevention Of Corporate Debt Default

With the continuous development of China's capital market,the scale of social financing has been continuously improved.The proportion of credit debt financing in direct financing has far exceeded the stock financing,and the situation of high speed growth has been maintained.Bond financing has many advantages,such as relatively low cost,leveraged income,repayment priority over equity,and free choice of longer financing period and larger financing scale,so although the bond market started late in the country but developed rapidly,it has become a non-negligible existence in our financial market.In the course of the development of China's bond market,it is an important goal to increase the proportion of corporate bond financing in direct financing.The development of corporate bond market has important theoretical and practical significance for the company to improve the financing structure,broaden the external financing sources,and improve the corporate governance structure.But in recent years,with the economic downturn and the continuous progress of supply-side structural reform in China,the operating performance of some corporate debt issuers began to decline,the difficulty of debt service gradually increased,and the pressure of debt default gradually appeared,especially in recent years,the frequent default of corporate debt has brought severe challenges to the corporate bond market in China.In order to understand the risk of corporate bond default,this paper summarizes the situation of corporate bond default in China in recent years,combining with the relevant case,the reasons for the default of corporate bonds are sorted out and analyzed,and relevant suggestions are put forward.This paper firstly analyzes the market situation and default situation of corporate bonds by means of summary.Then,through the analysis method of case and theory,the paper analyzes the main causes of the default of Dandong Port Group's bonds from two aspects,and concludes that the company's future profitability and solvency will be adversely affected by the company's aggressive business expansion under the adverse external environment of its own port industry's economic downturn,hinterland economic decline and fierce competition in its regional port business make the credit risk of the company rise sharply.As a private enterprise,the actual controller of the company involves negative events and the deterioration of the investment and financingenvironment in Liaoning Province,which cuts off the financing channels of Dandong Port Group,triggers the credit risk of the enterprise,and finally leads to the occurrence of bond default.Finally,according to the conclusion drawn from the case analysis,this paper puts forward the following suggestions from three angles: the main body of issuing debt,the intermediary organization and the supervision market: the company should formulate a reasonable development strategy according to the external environment;adjust the strategic direction in time according to the business situation of the enterprise;establish the early warning mechanism of credit risk;and guard against the actual control of human risk.Lead underwriters should improve their service level;rating agencies should improve credit rating mechanisms.Regulatory authorities should establish and improve the information disclosure system;improve the bond default treatment mechanism.