Research On The Impact Of China Shipbuilding Industry Company Limited's Market-oriented Debt-to-equity Conversion On Its Capital Structure

Since the 2008 economic crisis,the scale of China's corporate debt has continued to rise,pressure on debt repayments has increased,the asset-liability ratio has increased year by year,and the risk of corporate debt default has increased sharply.Some energy manufacturing companies have significantly reduced their profitability due to excess capacity and debt pressure.Even bankruptcy and bankruptcy have prevented normal operations.Excessive leverage has inhibited the ability of enterprises to operate and develop,and has also hindered the normal development of China's economy and society.In this economic context,China began implementing supply-side structural reforms of "three removals,one reduction,and one supplement" in 2015.Among them,marketoriented debt-to-equity swaps as the main means of deleveraging are also constantly being developed and improved.Under the new normal state of China's economy,choosing the right company for market-oriented debt-to-equity swaps will help companies alleviate debt pressure,resolve financial risks,increase corporate profitability,and reduce corporate asset-liability ratios,thereby optimizing corporate capital structure.The role of enhancing corporate value and promoting long-term healthy development of the enterprise.This article selects CSIC work as the research object,and uses the case study method to research and analyze the implementation process and results of its marketoriented debt-to-equity swap.First,this article introduces the research background and significance of debt-to-equity swap and domestic and foreign experts' Research results of debt-to-equity swaps.Second,it introduces the meaning,characteristics and institutional background of debt-to-equity swaps,and also introduces some theories related to debt-to-equity swaps,providing a theoretical basis for subsequent analysis.Third,it introduces the implementation plan,operation process and implementation reasons of CSIC's market-oriented debt-to-equity swap,and briefly compares some of the financial data before and after the implementation of the debt-to-equity swap.Fourthly,First explore the pre-capital structure of CSIC.Then analyzing its impact on the capital structure from the equity structure and debt structure,and use the optimal capital institution model to calculate The optimal asset-liability ratio is compared with the actual situation of the enterprise,and the impact of this market-oriented debt-toequity swap on the enterprise is analyzed.Fifth,to address some of the shortcomings in the process of CSIC debt-to-equity swap,it puts forward policy recommendations such as improving profitability,optimizing financing channels,expanding other programs to cooperate with debt-to-equity implementation,and implementing agencies should strengthen supervision and improve governance structures.Sixth,from the fulltext research and analysis,it is concluded that the market-oriented debt-to-equity swaps of CSIC did play a role in improving corporate debt repayment ability and profitability,and at the same time promoted the optimization and adjustment of corporate capital structure,enhanced corporate value,A solid foundation for sustainable development.