Case Study On Debt Default Of Jingui Silver Company From The Perspective Of Major Shareholder Encroachment

Of Chinese private listed firms from the capital market in our country,equity concentration and agency problem of major shareholders have been more serious,big shareholders encroachment is difficult to stop,under the background of corporation defaults especially highlight.In the case of debt default,major shareholder encroachment is the direct trigger of debt default,which has some particularity compared with other default cases.Like other private enterprises,Jingui silver company is also faced with policy factors such as insufficient core competitiveness,private enterprise financing constraints," environmental protection policy to capacity ",as well as general problems such as industry cycle fluctuation and macroeconomic downward adjustment.This paper analyzes the debt default events of Jingui silver company from the perspective of major shareholder encroachment,and summarizes the process from major shareholders' pledge crisis in 2018 to the material default of "14 Jingui" in 2019.And analyzes the case from three aspects,including the motivation of major shareholders encroachment,the influence mechanism of major shareholder encroachment on the debt default and the the financial consequences of major shareholder encroachment.First of all,on the basis of predecessors' research,based on the macro,industry and other factors on the major shareholders encroach on the behavior motive analysis found that the big shareholders occupy behavior occurs,in addition to its own moral hazard,also influenced by macroeconomic cut,industry characteristics,leading to the high financing needs and the influence of factors such as internal governance system failure;Secondly,in this case,the major shareholder mainly hollowed out the resources of the listed company by means of equity pledge,overinvestment,illegal guarantee and direct embezzlement of funds,which led to the debt default of the company.Finally,through the horizontal and vertical analysis of the financial data of Jingui silver company,it is found that the consequences caused by the encroachment of major shareholders are reflected in the financial data of the company,and the loss of financial flexibility further leads to the debt crisis.It is concluded that the influencing factors of private enterprise debt default from the perspective of major shareholder encroachment are mainly divided into two aspects.On the one hand,the major shareholder's moral hazard and weak internal control will lead to major shareholder encroachment and increase the risk of corporate debt default.On the other hand,the financing constraints faced by private enterprises and policy tightening factors such as "environmental protection + overcapacity reduction" will affect the choice of development path of enterprises,lead to major shareholders' encroachment,distort investment and financing decisions,and accelerate the debt default behavior of enterprises.Based on the above analysis,this paper believes that in order to effectively restrain the risk of debt default caused by the embezzlement of major shareholders,on the one hand,it is necessary to strengthen the prevention and control of moral hazard of major shareholders and the construction of enterprise internal control system;On the other hand,financial institutions should eliminate the financing discrimination of private enterprises,and private enterprises should improve total factor productivity and take the road of high-quality development.