Research On The Implementation Effect Of The Market-oriented Debt-to-equity Swap Of Yunnan Tin Group

Economic development is inseparable from financial support.The rapid development of the economy's dependence on debt funds makes the capital structure seriously unbalanced.This not only exacerbates the financial risks of enterprises,but also makes their operations in trouble.This problem is particularly prominent in China's state-owned enterprises.In order to solve the debt problem of state-owned enterprises,Government has implemented a debt-for-equity policy in the 1990 s,which continues to this day,in order to cope with the supply-side structural reform and deleveraging policy.It evolved into a second round of market-oriented debt-to-equity swaps.Compared with the last round of government-led debt-to-equity swaps,this round of debt-to-equity swaps has paid more attention to market and legal system,and take a series of measures to reduce the asset-liability ratio of state-owned enterprises,promote the sustainable and healthy development of enterprises.On the basis of summarizing the previous research results,this paper systematically introduces the related theories of debt-to-equity swap and enterprise performance based on capital structure theory,agency cost theory and enterprise performance research theory.Through the comparison of two rounds of debt-to-equity swaps,Analyze the motivation and mode of market-oriented debt-to-equity swaps,and introduce the basic overview and implementation plan of Yunnan Tin Industry.The article uses the financial ratio analysis method to select the financial indicators such as solvency,operational capacity and profitability of Yunnan Tin Industry before and after the implementation of market-oriented debt-to-equity swaps in 2010-2017,and conducts business after the implementation of market-oriented debt-to-equity swaps.And analyze the impact of governance.The cash flow discount model in the enterprise value measurement method is used to measure the enterprise value based on the 2017 data of Yunnan Tin Industry.Through the above research,the following research conclusions are drawn:(1)Market-oriented debt-to-equity swaps can significantly reduce the scale and leverage ratio of enterprises,and enhance their solvency and profitability;(2)Market-oriented debt-equityswaps can optimize corporate equity financing.Structure,constrain the investment behavior of enterprises,improve investment efficiency,reduce enterprise cost and improve operating efficiency;(3)Market-oriented debt-to-equity conversion can enhance corporate value,promote long-term stable development of enterprises,and contribute to the preservation and appreciation of state-owned assets in China;(4)The impact on the operational capacity of enterprises in the short term is not obvious.Based on the above research conclusions,combined with the comparative analysis of the two rounds of debt-to-equity swaps,the recommendations for the follow-up market-oriented debt-to-equity swaps of Yunnan Tin Industry are summarized:(1)Continue to restructure the core business;(2)Transform the long-term financing methods of the enterprise;(3)Establish a modern enterprise system and improve operational capabilities.Combining the success of Yunnan Tin Industry to implement market-oriented debt-to-equity swaps provides reference for other companies that intend to implement market-oriented debt-to-equity swaps:(1)Choose the appropriate debt-to-equity swap model;(2)Special funds for debt-to-equity swaps;(3)Strengthen post-investment management of debt-to-equity swaps.