Research On The Impact Of Market-Based Debt-to-Equity Swap On Leverage Rate And Corporate Performance

In order to further promote the structural reform of the supply side,solve the problem of "high leverage rate" of Chinese enterprises,and actively and steadily reduce the leverage rate of enterprises,"deleveraging" has become the key task of the specific policy.Its main means is to launch the market-based debt-to-equity swap.Compared with the 2016 policy-oriented debt-to-equity swap that helped state-owned enterprises out of poverty after the Asian financial crisis in 1998,the core of this market-based debt-to-equity swap is market participation.Besides,facing the increasingly prominent problem of insufficient development imbalance in China,the economic development level of different regions and industries is quite different.This paper empirically studies the related effects of market-based debt-to-equity swap policy on the leverage rate and corporate performance,which has certain theoretical and practical significance.Based on the classical capital structure theory,this paper analyses the impact of debt-to-equity swap on leverage and performance of heterogeneous enterprises,and then puts forward three hypotheses.In this paper,67 listed companies that have implemented the market-based debt-to-equity swap are selected as the experimental group,56 listed companies are selected as the control group according to the requirements of debt-to-equity swap target enterprises.A total of 123 sample enterprises are selected.Taking the period from 2013 to 2018 as the research sample,empirical regression and robustness test are carried out according to the experimental steps of DID(Differences-in-Differences model).Finally,this paper draws the following four conclusions:(1)the policy has significantly reduced the leverage rate year by year;(2)the effect of the policy on the "deleveraging" of strong cyclical industries is significantly higher than that of other industries;(3)the effect of the policy on the leverage rate of enterprises in different regions and industries is heterogeneous,among which the enterprises in strong cyclical industries in the eastern region are most affected by the policy;(4)the policy has significantly improved corporate performance which have implemented the market-based debt-to-equity swap.In addition,on the basis of this paper,some practical policy Suggestions are put forward.In order to carry out market-oriented debt-to-equity swap more orderly in the future,improve the bond debt market,invigorate enterprise finance and remove blood stasis,and provide suggestions for the state to adjust the imbalance of regional economic development from the macro level.On the one hand,this paper updates the market-based debt-for-equity swap policies,discusses the differences between this round of market-oriented debt-for-equity swap and the last round of policy-based debt-for-equity swap,and analyzes the important role of market-oriented debt-for-equity swap in the balanced economic development of state-owned enterprises from the perspective of industrial and regional differences in a more detailed manner.On the other hand,this paper provides empirical evidence for understanding the impact of economic policies at the micro-enterprise level,enriches and develops the research paradigm of "macroeconomic policy and micro-enterprise behavior" unique to Chinese scholars in the context of China,and then puts forward specific suggestions on how to further promote the "deleveraging" of state-owned enterprises and balance the development of various industries and regions.