| Under the current economic environment,the bond market has become an inseparable part of my country’s financial market,and its healthy development is of great significance to the financing of my country’s non-listed companies.However,with the transformation and upgrading of my country’s economic structure,the slowdown in economic growth,and the impact of the new crown pneumonia,many bond defaults have occurred.Defaulted bonds cover almost all market players and all industries.The normalization of bond defaults not only weakens investor confidence,but also increases corporate financing costs.Companies that default often have problems themselves,which is not conducive to their own sustainable operations.The Central Committee of the Communist Party of China attaches great importance to the security of the financial market,and the state has also introduced a series of policies to deal with bond defaults.Firstly,this paper expounds the background,significance,research and methods of the research,and sorts out the references in terms of literature review.The causes of bond default are divided into internal and external factors for analysis.Secondly,sorting out the economic consequences of bond default proves the necessity of corporate bond default risk prevention.Finally,it proposes risk prevention for various causes of corporate bond default.In the case study part,it is proved that Tsinghua Unigroup has a high default risk before default through the financial status and Z value test of Tsinghua Unigroup.Subsequently,the internal and external causes of the bond default of Tsinghua Unigroup were analyzed.In terms of external analysis,it was believed that although Tsinghua Unigroup was affected by external factors,it was not enough to cause Tsinghua Unigroup to default on bonds,which was an inducement factor.The reason why Tsinghua Unigroup defaults on its bonds is more important because of internal factors:(1)The source of cash flow is unstable.Tsinghua Unigroup’s cash flow is more derived from the net cash flow from financing activities,and this source of cash flow is extremely vulnerable to external market.interference.(2)There are problems in the company’s own operation.A large part of the profit source of Tsinghua Unigroup relies on government subsidies,and its own profitability is poor.(3)The company structure is strong and the parent is weak.The parent company is a holding company without any substantive business.In this case,the parent company still issued a large amount of debt but had no means of repayment,and could only borrow new debt to pay off old debt.(4)The management decision-making problem,Zhao Weiguo,chairman of Tsinghua Unigroup,believes that all problems can be solved through mergers and acquisitions,and even thinks that it is better to invest in research and development than to buy directly.As a result,a large number of mergers and acquisitions by Tsinghua Unigroup were promoted,resulting in a surge in the debt of Tsinghua Unigroup,and finally a situation of bond default.In terms of risk prevention,this paper puts forward four suggestions on the causes of Tsinghua Unigroup’s default:(1)To ensure the stability of cash flow,the stable cash flow of the enterprise will help the enterprise to operate better,and it will also help the enterprise to meet the pressure of debt repayment.Face it calmly.(2)Issue bonds reasonably,and consider matching the term of use with the purpose of use when issuing bonds to avoid financing mismatch.At the same time,it should also avoid the concentration of bond repayment dates and increase the repayment pressure of enterprises.Finally,enterprises should comprehensively use various financing methods,and cannot rely solely on bond financing.(3)To improve its own operating ability,it can start from two aspects: improving solvency and profitability.(4)To strengthen the ability of corporate governance,enterprises should improve the decision-making mechanism,and not allow very few individuals to decide the direction of enterprise development,and avoid excessive merger and acquisition strategies. |
