Marketization Process,Debt Restructuring And The Improvement In Business Performance Of The Loss Companies

With the deepening of China's economic development and institutional reform,more and more companies are rapidly growing into listed companies through financing planning,organizational adjustment and product innovation.In the market economy's survival of the fittest,many companies also have different degrees of financial distress,into the loss status.The incentive effect,tax credit and leverage that had been used to make full use of debt financing turned into a debt crisis that brought the company to the brink of bankruptcy.When the company is in financial distress,it faces two choices: declare bankruptcy;The second is to negotiate with the creditors and restructure the debt.So far,our country debt restructuring standards promulgated since 1998,in 2001 and 2001 respectively through twice major revision,mainly for debt restructuring accounting problems,modified experienced "profit and loss,owners' equity,profit and loss" process.Because China's capital market is less mature than that of western developed capital markets,the frequent changes of the norms make debt restructuring a tool of earnings management.How does debt restructuring have an impact on the improvement of the operating performance of a loss listed company? What is the difference in the performance improvement effect of different debt restructuring methods? What is the relationship between the market process and the debt restructuring(debt restructuring,the way of debt restructuring)and the improvement of the operating performance of the loss company? These are all the contents that this article needs to explore.By reading literatures,found the following three points: Firstly,the previous literature mostly mixed samples as the research object to study the impact of the company's debt restructuring behavior,not considering the heterogeneity of profit and loss of companies.At the same time more will debt restructuring as an earnings management tool,debt restructuring behavior just for short-term profit manipulation,did not delve into debt restructuring behavior and the internal relations between company's business performance improvement;Secondly,prior to the study of debt restructuring is mostly from the motivation of debt restructuring,debt restructuring,the influence factors of research,for the choice of debt restructuring way more is standing in the research perspective of the creditors,there is little literature from the view of the heterogeneity of debt restructuring mode,research the influence of the different ways of debt restructuring to improve company performance;Thirdly,the previous research on debt restructuring was more about the impact on corporate performance from the perspective of corporate governance.Under the background of China's special system,regional financial environment and the difference of the economic foundation,the differences of the government's control of the local economy,etc,make the local differences in the company's market competitiveness,but few scholars combined with external governance environment to debt restructuring and the relationship between the losses of the company's performance improved.Therefore,in order to make up for the deficiency of the existing research,this paper aims to explore the mechanism and influence of debt restructuring on the improvement of operating performance of lossmaking companies.How does the different debt restructuring method have different effect on the improvement of the operating performance of the loss-making company? How will the process of marketization affect the relationship between this?This paper is based on the system background of Chinese reality,the listed companies in Shanghai and Shenzhen were selected as the research samples from 2008 to 2015.Integrated use of soft budget constraint theory,debt governance theory,the reputation mechanism of marketization process,debt restructuring(whether different debt restructuring,debt restructuring mode)on the losses of the company's business performance improvement through theoretical analysis,the influence of building model at the same time,and has carried on the empirical analysis.The study found that the loss of listed companies in the next year of debt restructuring,conducive to the improvement of their business performance;Compared with the modification of debt restructuring,the performance improvement of debt restructuring is better than that of debt restructuring;In the areas with higher marketization process,the performance improvement of the debt restructuring is better.Finally,according to the empirical analysis and research results,the following Suggestions are given: from the perspective of the company itself,first of all,we should correct the motivation of debt restructuring and effectively promote the occurrence of effective reorganization.Secondly,with the aid of debt restructuring,the rational allocation of resources,and constantly improve its governance structure,improve the efficiency of investment,fundamentally to improve its operating performance,preparing to raise their profitability;In the end,the losses in the process of debt restructuring of listed companies,under the premise that the consent of the creditors,according to their own situation,choose the way of debt restructuring,better improve the company's business performance.From a macro point of view,the government departments should speed up the process of marketization,the construction pace,to prevent the loss of debt restructuring behavior of listed companies,debt governance effect of play and the company's investment behavior,not local intervention to disrupt the healthy and stable development of capital market.The supervision department should improve and improve the market delisting system as soon as possible,so as to put an end to the stock market's healthy development.