Reasons And Enlightenment Of Debt Default Of University-run Enterprises

The concept of the university-owned enterprises are emerging and rising in the 1950 s.After more than 30 years of development,notable achievements has been made in scale,efficiency,etc.A group of well-known university-owned enterprises have standed out from the fierce market competition,such as Founder of Peking University and Tsinghua Ziguang,etc.However,these university-owned enterprises have some fundamental defects,such as vague property rights,unsound corporate governance and poor internal control effect,etc.These adverse factors will have a negative impact on the production and operation of enterprises and will eventually be reflected in the impact on the credit risk level of university-run enterprises.In addition,many school-run enterprises with rich backgrounds are excessively pursuing diversified business distribution,which makes the enterprise resources too scattered.And the expansion of business scale requires a large amount of capital investment,increasing the financial burden of enterprises.Founder of Peking University had a bond default at the end of 2019.As the first school-run enterprise in China to default on its bonds,Founder’s bond default not only reflects the company’s own financial crisis,but also sounds an alarm bell for other similar school-run enterprises.Through sorting out the problems existing in the management of school-run enterprises,this paper concludes that the overall default risk of school-run enterprises mainly comes from excessive pursuit of diversification and unclear ownership structure.On this basis,this paper takes Founder Group as a case to carry out a specific analysis,and concludes that Founder’s debt default is mainly caused by radical development strategy,corporate governance confusion and failure of internal control,hoping to provide some reference for school-run enterprises to control their own debt risk level.The innovation of this paper lies in that domestic researches on bond default are mostly from the perspective of specific industries.As Founder Group of Peking University is the first school-run enterprise in China that has defaulted on its bonds,there is little research on the school-run enterprise,an enterprise group with certain risks in common.By studying the reasons for the breach of contract of Peking University Founder Group,this paper can provide some references for school-run enterprises to control their own credit risks and enrich the content of bond research.At the same time,this paper selects the most popular and typical cases recently,which makes the research content timely to a certain extent.