Research On The Implementation And Effect Of Market-oriented Debt-to-equity Swaps In Enterprises

In the current situation of slowing down economic growth and heavy downward pressure,many manufacturing enterprises have too high financial leverage and heavy debt burden caused by blind expansion,which makes the already difficult situation worse.Enterprises have no time to take into account the adjustment of industrial layout and business transformation.Therefore,a new round of market-oriented debt-to-equity swap is imperative.This paper collects,collates,evaluates and summarizes the literature on market-oriented debt-to-equity swap at home and abroad.This paper reviews the theoretical basis,meaning,motivation,content,objectives,scope of application and key points of implementation of market-oriented debt-to-equity swap,combs the theoretical basis of market-oriented debt-to-equity swap,and constructs a logical framework.Subsequently,under the background of the new round of market-oriented debt-to-equity swap,this paper studies the case of debt-to-equity swap in China's aluminium industry,focusing on its implementation process and mechanism.In the aspect of implementation,it focuses on the analysis of the basis for selecting the underlying assets,the implementation steps,the pricing mechanism and the design of exit path.In the aspect of implementation effect,it focuses on the comprehensive evaluation of the policy effect of debt-to-equity swap from the perspective of solvency,profitability,development ability,market value and enterprise risk.By reviewing the implementation process of market-oriented debt-to-equity swap in China's aluminium industry and analyzing its policy effects,this paper summarizes the beneficial experience of implementing a new round of debt-to-equity swap in China's aluminium industry,and points out its potential risks.On this basis,it draws conclusions and policy recommendations.Some creative suggestions are put forward for innovating debt-to-equity swap model,reforming system drawbacks and promoting market-oriented debt-to-equity swap.