Study On The Formation Mechanism Of Shanghai RAAS Blood Products Co.,Ltd Financial Crisis

Under the influence of uncertain internal environment,in recent years,Chinese enterprises have been in the financial crisis of bond default,huge loss,"thunder",bankruptcy and so on.For example,Cady Eco’s stock was given an unspoken audit report by an accounting firm for two consecutive annual reports in 2017 and 2018.The trading will be suspended from April 29,2019,at the same time,the "16 Cady 01","16 Cady 02" and "16 Cady 03" bonds have been suspended from trading by the Shenzhen Stock Exchange.The financial crisis at Cady’s eco-finance has taken a heavy toll on the company’s stockholders and bond buyers.Therefore,whether in practice or theoretically,it is necessary to explore the formation mechanism of Chinese corporate financial crisis,to provide theoretical support for enterprises to predict and control the occurrence of financial crisis,so as to reduce the loss of corporate stakeholders.This paper uses literature review and case study methods to study the formation mechanism of Shanghai RAAS Blood Products Co.,Ltd financial crisis,focusing on the analysis and exploration of Shanghai RAAS Blood Products Co.,Ltd financial crisis factors and the formation process.Firstly,based on the research literature of enterprise financial crisis,this paper combs and analyzes the factors of financial crisis and the formation of financial crisis,and puts forward the research framework of Shanghai RAAS Blood Products Co.,Ltd case analysis.Secondly,based on the case analysis research framework,the evidence data of Shanghai RAAS Blood Products Co.,Ltd financial crisis case analysis is collected,and then the evidence data is analyzed by the method of matching the evidence data analysis.Third,in the case study process,it follows the "theoretical construction","evidence data analysis","viewpoint correction" and "final view" and other case study steps.Through the analysis of the evidence data of Shanghai RAAS Blood Products Co.,Ltd case,the following research conclusions are drawn:(1)Shanghai RAAS Blood Products Co.,Ltd financial crisis in the form of a huge loss in 2018.(2)Corporate governance,senior management background,rich cash resources,and initial venture capital profit are the internal causes of the financial crisis in Shanghai RAAS Blood Products Co.,Ltd,and the systemic risk of the securities market and the non-systematic risk of individual companies are the external causes of the financial crisis in Shanghai.(3)The formation process of Shanghai RAAS Blood Products Co.,Ltd financial crisis is:corporate governance,senior management background,cash resources wealth led to Shanghai RAAS Blood Products Co.,Ltd stock investment,and the initial profit of stock investment induced the company to make excessive stock investment,resulting in the company in a high-risk stock investment state.When the company is in a high-risk stock investment state,it is hit by the systemicrisk and non-systemic risk of the A-share securities market,which causes the company to lose a lot of money and end up in a huge financial crisis.