Research On The Scheme Design And Governance Performance Of Chalco’s Market-oriented Debt To Equity Swap From The Perspective Of Game Thinking

With the continuous deepening of reform and opening up,my country’s economy has entered a new normal of development.There are more and more factors affecting the development of the real economy,and various problems frequently appear.The solvency of many companies continues to decline,causing banks to face huge operations risk.One of the most effective measures to reduce the leverage ratio of Chinese enterprises and control bank credit risk is the market-based debt-to-equity swap.Government agencies continue to introduce relevant policies to encourage companies with good development prospects but encountering temporary difficulties to implement market-based debt-to-equity swaps,and strive to promote the reform of corporate internal governance structure and improve corporate operating efficiency.The implementation process of market-oriented debt-to-equity swaps is actually a game of conflict of interest among relevant interest groups around the control of state-owned financial resources and corporate control rights,and triggers the game of conflict of interest and cooperation among all parties involved in the market-oriented debt-to-equity swap process,forming a series of game relations.This article selects Aluminum Corporation of China Limited as the research object,analyzes the company’s market-oriented debt-to-equity swaps in depth,and uses the SWOT model to analyze the external environment and internal motivations of Chalco’s market-oriented debt-to-equity swaps.Detailed analysis,and then combined with game thinking to analyze how to design the market debt-to-equity swap,and finally reflect the changes in the effect of Chalco’s market-based debt-to-equity swap from the aspects of governance and performance.Through analysis and research,this article summarizes the following conclusions:(1)Chalco’s market-oriented debt-to-equity swap is mainly affected by the policy-oriented and economic downturn macro environment,industry turbulence and internal factors such as excessive leverage;(2)The design of a reasonable market-oriented debt-to-equity swap scheme under the game thinking mode will help increase the success rate of debt-to-equity swaps and improve corporate governance;(3)After the market-based debt-to-equity swaps of Aluminum Corporation of China Limited,the company’s equity structure has changed,making the capital structure can be optimized,which in turn has a certain improvement effect on corporate governance;(4)From the perspective of financial performance,corporate financial performance is flat with no obvious fluctuations,but the behavior is not well accepted by the market,so corporate value reaction from the market is relatively negative.Through an in-depth analysis of Chalco,this article puts forward the following suggestions for perfecting companies market-based debt-to-equity swaps:(1)Choose a scientific market-based debt-to-equity swap plan.Reform is the driving force for corporate development,and companies should grasp national policy preferences,combined with game thinking,choose this plan to improve the rationality and feasibility of the plan;(2)For the rights of new shareholders,they must be fully protected so that they can truly participate in the business decision-making of the enterprise independently.(3)The equity exit mechanism of Chinese enterprises is relatively simple.In order to reconfigure and revitalize the equity of debt-to-equity companies held by financial institutions,the equity exit mechanism should be improved.