Research On Causes And Countermeasures Of Debt Default Of Environmental Protection Enterprises

Since the rigid payment in the national bond market was broken,private environmental protection listed companies have repeatedly defaulted on their debts.Environmental protection listed companies such as Dunan,Oriental Landscape,Kaidi Ecology,and Shenwu Environmental Protection have been cold in the event of bond issuance and debt default,and the hidden debt default risk of environmental protection companies has begun to be revealed.With the outbreak of the default wave,the number and amount of debt defaults in all walks of life have increased substantially.The economic downturn caused by major and sudden public health events has also greatly increased the uncertainty in the operation of enterprises issuing bonds.The environmental protection industry is a typical capital-intensive industry,which is easy to be affected by policies.And may well be the next sector with a high default rate.Most of the debts of environmental protection enterprises have reached the centralized repayment period,and the possibility of collective default of a large number of enterprises in the industry is still high in the future.Therefore,how to effectively prevent the debt default risk of environmental protection enterprises has become a realistic topic that managers of environmental protection industry must face,and it is of great practical significance to study and solve these problems in depth.Based on the above background,using literature retrieval,quantitative analysis,case analysis and other methods,based on the theories of credit risk,information asymmetry,principal-agent and financial distress,and on the basis of analyzing the current situation of debt default of environmental protection enterprises,the debt default event of Saf Bon,a private listed environmental protection company,is selected as the case study object.Firstly,the default risk of Saf Bon debt is identified based on the financial model,and the performance of indicators before and after the quantitative analysis is carried out.The hidden risk points behind the indicators are analyzed through the model trend change.Secondly,the formation reasons of these risk points are further studied and analyzed.The increasing economic downward pressure and the industry’s own development weaknesses limit the development mode of enterprises.The radical development strategy,the lack of internal control and the imperfect financial management system of enterprises have buried many hidden dangers for themselves,and many factors together eventually lead to the occurrence of debt default.Finally,based on the above analysis,This paper puts forward some enlightenments to prevent the debt default of private environmental protection enterprises from three aspects: the company itself should construct a reasonable strategic layout,improve the internal governance ability,enhance the company’s financial management ability,and establish a perfect risk warning and response mechanism;Regulators should strengthen and improve the credit rating mechanism,establish and improve the market information disclosure mechanism,improve the government’s rescue ability for enterprises in distress,and stimulate the vitality of the industry to enhance the ability of sustainable development;Investors should change their investment thinking,improve their risk awareness,learn to identify credit risks and diversify investment risks,reduce the losses caused by corporate debt default,and provide reference for future environmental protection enterprises to prevent debt default risks.This study enriched the relevant research on debt default risk prevention of private environmental protection enterprises,and helped to improve the identification and assessment of the causes of debt default of enterprises in the industry,improve the ability to prevent debt default risk,and promote the steady and healthy development of environmental protection enterprises.