Analysis On The Implementation Effect Of Guangsheng Nonferrous Marketization Debt-for-equity Swap

Affected by the international financial crisis,China's macroeconomic downturn,many enterprises appear high leverage operation,large debt repayment pressure makes many enterprises in the edge of bankruptcy.In order to effectively help enterprises resolve the business difficulties brought about by the financial crisis and effectively realize the long-term development of enterprises,the Chinese government introduced the market-oriented debt-for-equity policy in November 2016.Compared with the policy debt-for-equity swap in the 1990 s,this debt-for-equity swap emphasizes marketization and legalization,that is,the debt-for-equity swap price,operational risks,investors and other aspects of the matter are determined by the market,no longer determined by the government,the government only plays a role in the formulation and supervision of debt-for-equity rules.In 2018,after a two-year period,the market-oriented debt-for-equity reform has been gradually deepened in many enterprises.Then,what changes have taken place in the debt-for-equity reform on enterprises' various business capabilities? Can this change effectively promote the long-term development of enterprises? Has the company been converted from bankruptcy risk? In order to effectively explore the above three issues,we trace the first market-oriented debt-to-equity swap enterprise in guangdong province--guangsheng nonferrous metals co.,LTD.Based on the analysis of guangsheng nonferrous management dilemma,debt causes,debt-for-equity motivation and debt-for-equity program,this paper evaluates the impact of market-oriented debt-for-equity reform on enterprises from three aspects: market effect,financial effect and operational risk.The study found that in the eyes of many investors,the core of this market-oriented debt-for-equity swap is not prominent,debt-for-equity swap only optimizes the capital structure of enterprises,but it is not enough for the in-depth optimization of enterprises' various operating capabilities,and the bankruptcy risk of enterprises is gradually reduced in the process of reform,but the bankruptcy risk still remains.In view of these research conclusions,this paper puts forward three Suggestions: adhere to the principle of marketization,grasp the government's participation;On the basis of the favorable conditions brought by market-oriented debt-for-equity swap,corporate governance should be strengthened to enhance the capabilities of corporate operation,so as to realize the long-term development of the enterprise.The government should strengthen the monitoring and control of the risk of the market-oriented enterprises to prevent the inaction of enterprise executives and malicious evasion of debts in the process of reform.The research in this paper enriches the literature on the impact of the new round of market-oriented debt-for-equity reform on corporate governance to a certain extent,and has certain reference significance for the follow-up implementation of market-oriented debt-for-equity reform by enterprises,and also has certain reference value for the optimization of market-oriented debt-for-equity policy by the government.