Research On The Contagion Mechanism And Risk Prevention Of Enterprise Group Credit Risk

Debt financing has already become one of the important sources of corporate financing.In 2018,domestic debt defaults broke out unprecedentedly,and the trend of default growth continues.This has caused a heavy blow to capital market participants and is not conducive to sustainable development of China's new normal economy,so how to prevent and resolve major credit risks needs attention from all sides.Credit risk does not exist in a certain risk enterprise in isolation,and may be transmitted to other entities through various economic connections.Once dynamic transmission of credit risk occurs,it will lead to systemic major risk events.Part of the main bodies involved in the outbreak of debt default events are listed enterprise groups.With the development of economic globalization,high-level economic conglomerates,enterprise groups,have played an increasingly important role in economic development,and they are widespread in various sectors.Regional business organizations.An enterprise group is a stable,multi-layered economic organization formed by a number of corporate entities or units that have close ties in assets,capital,and technology.Therefore,there are often complex relationships and many related transactions between member companies of enterprise groups.On the one hand,enterprise groups can rely on internal complex relationships to have information asymmetry advantages in debt contract games,and on the other hand,economic linkages between member companies of enterprise groups It will be greatly enhanced,and the credit risk of any member company will spread to other member companies through the intricate and complicated relationship within the group,eventually causing an irreversible negative impact.This article first sorted out the research status of credit risk causes and contagion,and explained related concepts and theoretical foundations involved in the research.On this basis,the process of the credit risk contagion of Shenwu Group is combed,the contagion mechanism of credit risk within the enterprise group is studied,and the internal and external reasons for the failure of the infected company to digest the credit risk internally are further analyzed.In the study of the mechanism of contagion,this article divides the contagion process of credit risk in the Shenwu Group into four stages,including the credit risk generated by the risk-exposed enterprises,which spreads to the core company of the group,and then affects other small and medium-sized outer companies of the group.Credit risk spillover effects.Based on the research of domestic and foreign literature and the specific cases of Shenwu Group,this paper proposes two types of credit risk transmission paths,namely credit risk transmission paths based on controlling relationships and credit risk transmission paths based on connected transaction behavior.The credit risk contagion based on the behavior of related party transactions is subdivided into related party purchase and sale transactions,related party guarantee transactions,and related fund loan transactions.The combination of theoretical analysis and case analysis is used to further explore the contagion mechanism.After clarifying the contagious process and the path of contagion,the internal and external causes of Shenwu Group's failure to resist credit risk transmission were analyzed and summarized,and the problems of Shenwu-based enterprises were analyzed from the aspects of industry level,profitability,operating capacity and capital structure.Finally,based on the carrier of credit risk in the enterprise group and the reasons for the failure of the infected company to resist the infection,it puts forward relevant risk prevention recommendations and measures.In this way,the contagion and escalation of credit risk among member companies of the enterprise group can be effectively avoided.