Study On The Influencing Factors Of Bond Default In China

After more than a decade of efforts in China’s bond market,the issuance scale of the bond market reached 39 trillion yuan in 2021,an increase of nearly2 trillion yuan over the issuance volume in 2020.The types of issuance continue to expand and the issuance scale continues to increase.By the end of December 2021,the stock balance of China’s bond market had reached 130.34 trillion yuan.The important progress made in China’s bond market has become an important part of China’s capital market and an indispensable part of the financial system.However,with the increasing number of bond defaults in recent years,the accumulation of default risks has affected the stability of the bond market.Under the above background,this paper will explore the main factors affecting the default of corporate bonds,mainly from the perspective of corporate governance structure.First of all,the common characteristics of defaulted bonds,such as regional distribution,industry distribution,enterprise nature,corporate governance(equity concentration,management change,frequency of changing audit institutions)and so on,are counted.Secondly,the case analysis of the first defaulting state-owned enterprise "Yongmei Holdings"and the actual case "Yanggu Xiangguang" encountered in work,including the introduction of bonds and issuers,the sorting out of the default process,and the in-depth excavation of its default causes from the market,industry and corporate governance,found that corporate governance had a great impact on bond default,Many business problems and corporate governance violations have problems in corporate governance structure.Finally,the research results of this paper are summarized and analyzed.It is found that from the perspective of default probability,industries with poor regional economic development and overcapacity,private enterprises and enterprises with poor corporate governance are more prone to default.Among them,the governance level has a great impact,which not only affects the profitabilit competitiveness of the company by affecting the business decisions of the enterprise itself,but also financial data is only the embodiment of the business results,It will also induce bond default events from information disclosure,internal control,shareholder behavior and other aspects...