Study On The Debt Default Risk Causes And Countermeasures Of Tahoe Group

Compared with other western countries,China’s bond market has developed for a short time,whether it is system construction or development scale,compared with the mature foreign capital market.In recent years,with the development of the bond market,the phenomenon of bond default is more and more common,so China began to study the problem of bond default,and there are many defects.In the past decades,with the increasing number of real estate enterprises,the scale of some real estate enterprises has gradually expanded,so that China’s real estate industry develops rapidly and occupies an important role in the national economic structure.At the same time,real estate prices have also risen sharply,and the state has continuously introduced policies to curb the bubble rise in the real estate market and promote the stable development of the real estate industry.So far,the size of the real estate market has been effectively controlled compared with before,mainly because most real estate enterprises are facing difficulties in the fierce competition,and the problems faced by enterprises themselves are becoming more and more obvious.While real estate enterprises use high leverage for their own development,they cause financial risks in the operation process,leading to the frequent occurrence of bond defaults.Therefore,the analysis and research of default risk are also increasingly paid attention to.This paper will take Tahoe Group debt default event as an example,from the debt default risk and risk formation cause,analysis to explore the reason,found that the problems existing in the debt risk control,to strengthen the debt default control Suggestions are put forward,to face the same debt default risk of real estate enterprises have certain reference significance.The paper is divided into seven parts,the first part is divided into an introduction,mainly explaining the research background and significance,confirming that the research object is Tahoe Group.The previous relevant research literature is introduced,mainly from the perspective of the influencing factors of bond default,countermeasures and debt default risk assessment.Then we propose the research content and research method,draw out the overall route map and introduce the innovation points of this paper.The second part introduces the relevant theoretical basis,mainly the concept of corporate debt default and the relevant theories used in this paper.The third part explains the cases selected in this paper,that is,the introduction,development process,financial situation and the whole process of debt default of Tahoe Group.The fourth part is the Z-Score model and factor analysis.The fifth part is to summarize the causes and paths of the debt default risk of Tahoe Group by using the adjusted Harvard framework.The sixth part is the default suggestions of Tahoe Group and the preventive countermeasures for the development of the real estate industry.The seventh part is the conclusion and its shortcomings.This paper from the debt default of the group,deeply study the group default risk and the cause of debt default,draw the conclusion: through Z-Score model and factor analysis of risk analysis,found that the group from 2018 to 2020,and has a big risk,the overall financial risk has much to do with the operating ability of the group,but the group obviously did not timely realize the existence of risk.Due to the influence of national macro-control,industry competition,coupled with the sudden outbreak,the company’s sales and financing are affected,in this case,but still according to the "individual" aggressive expansion strategy of debt expansion,and under the influence of disorderly diversification strategy,make the overall debt burden is not effectively alleviate.Because the enterprise cash flow crisis is often the direct cause of the debt default risk,through the analysis of the cash flow,the internal cash flow liquidity of Tahoe Group is seriously insufficient and the capital structure is unreasonable,and the overall debt burden is heavy,which ultimately leads to the occurrence of debt default.For these reasons,Tahoe Group should strengthen internal control,maintain independence,accelerate asset disposal,enhance operating capacity,change business philosophy,get rid of dependence on high leverage and high turnover,strengthen financial supervision,set up special financial warning organization,pay attention to market environment and policy changes,reasonably plan investment,improve the utilization efficiency of funds.