Game Theory Analysis: The Equity Price-making Of Debt-to-equity Swap Enterprise

This paper first analyzes both internal and external factors that affect the value of the debt-to-equity swap enterprises and then conducts its research with the method of game theory to figure out the way for the Assets Management Corporations to utmost their share price. The enterprise's owners and buyers must forecast the Free Cash Flow of Firm and decide a proper discount rate in order to determine their quoted price. The execution price is settled by the bargain of two sides. This paper use game theory to analyze the strategy of the Assets Management Corporations in the auction in different situations such as one buyer, multi-buyers and cartelized buyers and suggests the Assets Management Corporations should harder their marketing strive and establish more scientific stimulate mechanism to increase the share price of debt-to-equity swap enterprises, and maintain the value of state-owned assets.