Motivation And Performance Analysis Of Market-oriented Debt-to-equity Swap In Private Enterprises

Debt-to-equity swap is a way of debt restructuring that converts debt into capital.Market-oriented debt-to-equity swap is to abide by the principle of marketization,with the aim of reducing the leverage ratio of enterprises and promoting the transformation and upgrading.Under the background of domestic supply-side reform and structural adjustment,many private enterprises have encountered temporary difficulties such as excessive leverage ratio and difficulty in financing.In order to effectively alleviate debt pressure,reduce financial risks and enhance the medium-and long-term development resilience of enterprises,many enterprises choose to deal with the crisis by marketoriented debt-to-equity swap,carry out strategic upgrading and enhance their competitiveness and operating strength.The market-oriented debt-to-equity swap of Tianshen Entertainment is a typical successful case of private enterprises.This paper mainly focuses on the motivation and performance analysis of the market-oriented debt-to-equity swap of Tianshen Entertainment.with a view to seeing through the application of market-oriented debt-to-equity swap of private enterprises.The full text consists of six chapters and is divided into three parts.The first part mainly introduces the research background,significance,literature review,research methods,related concepts and theoretical basis.The second part makes a detailed analysis of the market-oriented debt-to-equity swap case of Tianshen Entertainment,starting with the basic situation of the company,analyzes the motivation of the market-oriented debt-to-equity swap,and then summarizes the mode and process of the market-oriented debt-to-equity swap of the company,and analyzes the reasons for its success.Focusing on the financial performance and non-accounting impact analysis of market-oriented debt-to-equity swap,this paper starts from five aspects: financial performance analysis of basic financial indicators,financial performance analysis based on Du Pont analysis,shortterm market reaction analysis,non-financial impact analysis and risks and problems,and thinks that the market-oriented debt-to-equity swap of this company is a successful attempt under the background of supply-side reform.The third part summarizes the market-oriented debt-to-equity swap case of Tianshen Entertainment and puts forward some suggestions.The paper holds that private enterprises with development potential can get out of the predicament through market-oriented debt-to-equity swap.Market-oriented debt-to-equity swap can improve the financial situation of enterprises and optimize corporate governance,but it is not a panacea.It is suggested that debt-to-equity swap should become the new normal,adhere to the basic principles of marketization and legalization,effectively promote the reform of corporate governance structure,and improve the follow-up work of debt-to-equity swap.