Research On The Financial Effect Of Market-oriented Debt-to-equity Swap

Affected by the international financial crisis,my country’s market economy has declined since 2008,and the leverage ratio of enterprises has gradually increased.Many enterprises are facing severe debt crises.Excessive debt costs have inhibited the normal operation and development of enterprises.The same excessive leverage has hindered the development of enterprises,but also greatly increased the bank’s non-performing loan rate,increasing systemic risks and threatening the development of the overall national economy.In order to help domestic companies get rid of the operational difficulties caused by the financial crisis,the state introduced market-oriented debt-to-equity swap policies in 2016.Unlike the previous round of debt-to-equity swaps,this round of debt-to-equity swaps is more market-oriented and legalized.,The government is no longer in a dominant position,and the market has played a decisive role.This article takes the Shaanxi Coal Industry Chemical Group as a research perspective,combines the background of the coal industry where the company is located,and uses the analytical methods learned to explore the impact of the implementation of market-oriented debt-to-equity swaps on the company.Shaanxi Coal and Chemical Industry Group’s market-based debt-to-equity swap is the first debt-to-equity swap led by a local asset management company,and it is also the first debt-to-equity swap involving a city commercial bank,which further expands the scope of the research subject of debt-to-equity swaps.The research on this debt-to-equity swap is of representative significance.On the basis of introducing the basic situation of the participants in the market-oriented debt-to-equity swap of Shaanxi Coal and Chemical Industry Group,the reasons for the conversion,the conversion plan and mode,this article analyzes the market from four aspects:financial status,capital structure,financial risk,and corporate value.The impact of chemical debt-to-equity swaps on enterprises.The results of the research are as follows: First,in the short term,the implementation of market-oriented debt-to-equity swaps can significantly improve the solvency and profitability of enterprises,improve their operating conditions,and enhance their development capabilities;share-swap makes the capital structure of enterprises This has further optimized the corporate governance structure and made investment decisions more reasonable;although the share transfer can reduce the bankruptcy risk of the enterprise to a certain extent,it cannot bring the enterprise from the edge of bankruptcy;secondly,in the long run,Market-oriented debt-to-equity swaps enhance the value of enterprises and are conducive to their long-term development.The following enlightenment is drawn from the research: First,the implementation of debt-to-equity swaps must strictly follow the principle of“marketization”;second,the market-oriented debt-to-equity swap entry and exit mechanism must be gradually improved;third,the risks of market-oriented swap companies must be strengthened Management and control;the fourth is to optimize the corporate governance system from a deep level,continuously improve the business model,and expand the marginal benefits brought by the market-based debt-to-equity swap.This article has a certain reference significance for the subsequent implementation of corporate market-oriented debt-to-equity swaps,and it also provides a reference for government departments to optimize market-oriented debt-to-equity swap policies.