Study On The Debt-for-equity Swaps Effect On The State-owned Enterprises' Capital Structure By Using Yunnan Tin Debt As An Example

Debt-for-equity swap means that part of the company's debt changes into its equity,which makes the debt reduced and the owner's equity increased.What's more,it can reduce the leverage ratio,and has on influence on the capital structure of the company.At present,the debt level of the state-owned enterprises is very high,and the downtown pressure on the economy will continue to increase.As a debt restructuring,debt-for-equity is helpful to adjust the capital structure and improve the financial situation of the state-owned enterprises.On the basis of existing research,through the analysis of the implementation of the capital structure of China's state-owned enterprises and debt,this paper chooses Yunnan Tin Industry as the research object to see the implementation which the implimentation of debt-for-equity has on it by multi angle.First of all,this paper described the basic situation of the Yunnan Tin Industry and its debt program in details,and focuses on the analysis that debt-for-equity has on debt on the asset liability ratio,financial structure,solvency and net asset valuation and other aspects of the impact,then we can see the impact of capital structure of Yunnan Tin Industry by debt-for-equity program.Finally,this paper makes a summary and give some suggestions to help to implement and improve the policy of debt-for-equity.