Research On The Causes Of Bond Default Of Tunghsu Optoelectronic

Nowadays,the bond market has become an important part of the capital market,the issuance of bonds has also become an important way of corporate financing,and the basis of bond financing is based on corporate credit,for a long time,China’s bond market has been relatively stable,until2014,China broke out the first substantial bond default,since then China’s bond defaults have become more and more frequent,and even many state-owned enterprises have produced bond defaults,bond defaults are becoming more and more normal,which greatly enhances the credit risk of the financial market.At the same time,it has also attracted the attention of the state and society.Among the many bond default enterprises,private enterprises account for the vast majority,and private enterprises are more likely to have financial crises,reduce their credit levels,and default on bonds due to irregular management systems,unreasonable use of funds,and narrow financing channels.This paper selects Tunghsu Optoelectronic,the largest local enterprise in China and the fourth in the world to manufacture optoelectronic display materials,as the case analysis object,adopts the case analysis method,literature research method and other methods to analyze,uses information asymmetry theory,financial distress theory and financial early warning theory as the theoretical basis,first briefly summarizes its company situation,including company profile,company operation and financial status,and then from the bond issuance,The bond default process and bond credit rating change angle sorted out the context of debt default,and then introduced the rescue measures taken by Tunghsu Optoelectronic after the default,including adjusting funds to ensure normal operation,returning to the main business of optoelectronic display and actively introducing strategic investors.The impact of bond default on enterprises and investors is expounded,followed by the analysis of the reasons for default,divided into external reasons of enterprises and internal reasons of enterprises,external reasons are macroeconomic downturn and a variety of industry factors,internal reasons mainly include corporate strategy is too aggressive,business is too dispersed,equity structure is too concentrated,the company’s financial situation continues to deteriorate,etc.,and then use the Z-score model to analyze,calculate the Z value of Tunghsu Optoelectronic,according to the change of Z value,The analysis verifies the conclusion that the business conditions of Tunghsu Optoelectronic are deteriorating.Finally,it is concluded that the bond default of Tunghsu Optoelectronic is the result of the external environment and the company’s own problems and on the basis of the above analysis,this paper puts forward a rationalization proposal for Tunghsu Optoelectronic: the company should reasonably formulate the enterprise development strategy and improve the company’s internal governance;Regulators should improve the third-party credit rating system and strengthen the handling of the consequences of default.Finally,it is hoped that the research in this paper can play a positive role in preventing the occurrence of bond defaults in China’s bond market,and also hope to provide some enlightenment and reference for related enterprises.