Research On The Debt Restructuring And The Financial Effect Of Listed Companies In China

With the continuous development and expansion of the national economy,the increasingly mature securities market and the relevant economic system have provided a broader platform for the survival and development of listed companies in China,but with the attendant is more intense competition.In particular,listed companies want to seek stable operation and a step further of the enterprise,are using various economic means to stimulate the economic efficiency of enterprises to enhance.Among them,because debt financing has a lot of roles,such as financial leverage,tax credits,flexibility in the use of funds,etc.So managers and shareholders of listed companies are interested in debt financing.However,there are advantages and disadvantages,the use of debt financing of listed companies compared with equity financing have greater financial risk,once the scale of debt is too large lead to enterprise capital chain breaks,enterprises will fall into financial difficulties,facing bankruptcy liquidation.At this point,most of the listed companies of high level of debt have chosen to save the debt through debt restructuring.In particular,for the high-quality listed companies that has its own good prospects for development and integrity of the internal management,if the company correctly use the debt restructuring to get rid of the heavy debt burden,you can return to the healthy business track,not only to protect the interests of creditors more,but also to protect the interests of investors to avoid losing everything.Ultimately,it is a win-win results for the company’s creditors and shareholders.Based on the case study of XY company’s debt restructuring,this paper studies and analyzes the short-term and long-term financial effects of XY company’s debt restructuring based on the theoretical knowledge of financial management and financial accounting,and strive to readers from this article to understand in detail the whole process of the company’s debt restructuring case,draw some thinking and experience about debt restructuring.This paper is divided into seven chapters.The first two chapters introduce the background and the significance of debt restructuring from the theoretical level,the related research of debt restructuring at home and abroad,the definition of debt restructuring and financial effect and the theoretical basis.Chapter 3 to Chapter 5 are the main body of the case,this part analyzes the background,motivation,process,methods and results of XY company’s debt restructuring and the short-term and long-term financial effects brought by the debt restructuring to the enterprise;Chapter 6 evaluates the company’s debt restructuring case,subsequently,this paper puts forward some suggestions on the debt restructuring of listed companies in China:(1)appropriate use of financial leverage,standardize the operating system;(2)clear their own position,to develop a reasonable debt restructuring program;(3)enhance internal governance,and strive for more relevant party’s support.Finally,sum up the whole case,come to the conclusion of debt restructuring.In the situation of the external environment of China’s debt restructuring is getting better and better.In this paper,through the success of XY company’s debt restructuring case,hoping debt restructuring to play its real effect and the correct role to help companies get rid of debt burden to regain a new life,to provide some reference to the similar listed companies.So that the debt restructuring of listed companies in China can be healthy development,to provide support and help to the social economy and the stability of enterprises.