Research On The Impact Of Group Control Mode On The Debt Default Of Subsidiaries

On November 12,2020,Yongcheng Coal and Power Company announced that due to insufficient funds,it was unable to repay the ultra-short-term financing bonds,which had constituted a substantial default.This bond default event caused turmoil in the securities market,and many corporate bonds were postponed or even stopped selling.The credit rating of the issuer Yongmei Holdings and its group parent company was downgraded from 3A to B,and the issued bonds were cross-defaulted,some of the bonds were downgraded to C,and some of the bond payments were extended.CSRC investigation results show that Yongcheng false disclosure of monetary capital and financial instrument information disclosure violations.Among them,the false disclosure of monetary funds refers to that Yongmei wrongly classifies its own limited use funds into monetary funds.The essence behind the behavior of Yongmei falsely increasing monetary funds is that there are many deficiencies in the group management and control mode.Therefore,this paper from the group management and control mode,Yongmei Holdings for a more in-depth study of the reasons for default.Based on this,out of interest in the reasons for Yongmei’s breach of contract,In this paper,the classical grounded theory research method is selected to collect,sort out and analyze the data of Yongmei and its controlling shareholder Henan Energy Chemical Group,and it is found that the insufficient working capital of Yongmei is caused by the transfer of the group’s financial company,and the violation of information disclosure is also related to the control and control of the controlling shareholder to a certain extent.Then,to determine the research questions:(1)what is the control mode of Henan energy and chemical group and will it have an impact on the subsidiaries?(2)What are the impact mechanisms of the group’s control mode on the default of subsidiaries?(3)Are there other factors that will affect the relationship between group control and subsidiary default? After determining the research problems,code the original materials,then analyze and classify them to form categorization,saturate the theory through continuous comparison and improvement,and finally form a substantive theoretical framework to draw the conclusion of the text.The results show that:(1)different groups adopt different management control modes and strategic control modes,which will have different influences on subsidiaries.(2)The group management and control mode has an impact on subsidiaries through four control modes: personnel control,financial control,resource control and information control.Through grounded theory and comparative analysis,it is found that the control mode has prominent problems,so that the group has insufficient risk identification ability and control ability of its subsidiaries,which will make the group and its subsidiaries fall into financial difficulties to a certain extent.(3)A sound group internal control system and strict industry supervision can help the group to establish an effective control mode,so as to prevent the default risk of subsidiaries.In this article,the probably dedications and innovative points of are mainly as follows: the research perspective of the previous literature is more to analyze the causes of coal and grasp itself,pay more attention to the analysis of industry background,problems in operation and management,financial situation,etc.,and analyze the reasons for its breach of contract from the perspective of the lack of control mode of the group’s parent company,and based on this,this article from the perspective of group control mode,It reveals the influence mechanism of the outstanding problems existing in the model on the default of subsidiaries and expands the research perspective of the economic consequences of the group management and control model.In terms of research content,the grounded theory is applied to analyze the existing problems and influence mechanism of Henan Energy Chemical Group’s management and control mode,providing theoretical support and suggestions for group enterprises to optimize their own management and control mode.