| Under the authority of the new Securities Law,the Shanghai and Shenzhen Stock Exchanges issued new delisting rules on December 31,2020,and China entered a new phase of delisting reform.In order to further maintain the authority and credibility of the delisting mechanism,companies that obstruct the market order and meet the conditions for delisting will be delisted as much as possible,and irregularities that deliberately avoid delisting will be severely combated to promote the establishment of a market mechanism for the elimination of winners and losers and to improve the management of companies.However,the number of companies that have been mandatorily delisted in China is not large,and there are few case studies on this issue.In recent years,the number of companies that have been compulsorily delisted due to financial fraud and touching on major violation indicators has gradually increased.In view of the relative lack of theoretical studies related to the delisting of listed companies due to financial fraud and maj or violations in China,this paper discusses the causes and effects in more detail from actual cases.This paper takes corporate governance as the basis of research,selects Kangde Xin Company as the research object,queries the relevant annual report data of the company,analyzes the reasons for its delisting and proposes corresponding countermeasures.The paper firstly outlines the background and significance of the selected topic,the research content and methodology,and the related literature studies.Detailed analysis;through the study,we find that the internal governance of Kangde Xin Company has problems such as too aggressive development strategy,unreasonable shareholding structure,unreasonable design of governance structure,and lack of good corporate culture,and the external governance has problems such as excessive pressure of market environment,inadequate implementation of government regulation,and lack of professionalism of auditors;according to the internal and external governance problems of the company,corresponding solution measures are proposed,and finally The conclusions of this paper are drawn.It is hoped that this case study of Kangde Xin can warn other listed companies that they must abide by the industry rules in their operation,improve the profitability of the company,be alert to various risks,avoid breaking the rules and being forced to be delisted,and serve as a reference for the long-term development of listed companies. |
