Default Events of China Public Offering Corporate Bonds: An Empirical Study on Kaisa Group Holdings Ltd

• Main Authors: Chieh-Ying Weng, 翁潔瑩
• Other Authors: 李賢源
• Format: Others
• Language: zh-TW
• Published: 2015
• Online Access: http://ndltd.ncl.edu.tw/handle/08571347706700393000

碩士 === 國立臺灣大學 === 財務金融學研究所 === 103 === Among the default events of China public offering corporate bonds, Kaisa Group is the first Chinese company that defaults on US dollar corporate bonds, therefore has an important meaning to offshore investors. This paper discusses that if there is any possibility of strategic default in Kaisa’s default event, and if there are any measures to enhance the protection of debt holders. In the empirical study, there are three parts: financial distress prediction, debt restructuring plan analysis, and default boundary calculations. The results of empirical study show that the financial situation of Kaisa has a long-term deterioration, and the debt restructuring plan will result in big loss for both onshore and offshore debt holders, therefore the shareholders have the possibility of strategic default. Moreover, the default boundary calculations show that the shareholders have the incentive of strategic default. Therefore, this paper considers that in the Kaisa’s default event, there are incentives for shareholders to choose to strategically default. About the protection measures of debt holders, this paper regards the introduction of credit default swaps for individual companies as an effective measure to enhance the protection of debt holders.