Research On The Influence Of Debt Restructuring To ST Companies In China

With the development of China’s securities market, a large number of listed companies are emerging to promote the progress of China’s market economy, becoming the backbone of the China’s economy. However, some of the listed companies confront the difficulties to repay the huge debt due to different reasons. That has seriously hampered the development of the companies.To handle such financial trouble, many companies execute debt restructuring to help to get rid of the crisis. Debt restructuring can not only resolve debt problem but also improve the corporate performance.However, it is undeniable that some of the listed companies execute debt restructuring not for the purpose of improving the capital structure or corporate performance, but to use it as a tool of earnings management, especially the ST companies. This is why the Debt Restructuring Accounting Standard has undergone several revisions in recent years. Therefore, this paper aims to provide a comprehensive view of current debt restructuring executed by ST companies and study the influence of it.This paper is divided into seven chapters. The first chapter is an introduction of the research background and research purposes. The second chapter reviews existing related research on debt restructuring. The third chapter is the theoretical foundation and analysis. In chapter four, the essay mainly introduces the characteristics of the sample firms’debt restructuring behavior. The following two Chapters both examine the effects of debt restructuring to the ST companies. Chapter5analyses the influence of debt restructuring to the sample companies based on "economic consequences" perspective. Chapter6analyses the influence of debt restructuring on the sample companies’performance through financial analysis. Chapter7,conclusions and recommendations.The main contribution of this paper is to summarize the overall situation of the ST companies which execute debt restructuring and analyze the influences. Due to limitation of time and academic aptitude, this dissertation still needs improvements in some ways...