Research On The Motivation,Effect And Risk Management Of Debt-to-equity Swap Of State-owned Enterprises Under The Background Of Mixed Ownership Reform

With the current macroeconomic downturn and the slowdown in economic growth,deepening corporate reforms and solving problems in corporate development are the key points for my country’s economic transition to a stage of high-quality development.Among them,state-owned enterprises,as the main force of the entity’s pillar industries,have long been the focus of corporate reform.The mechanism and effect of debt-to-equity swaps can be effectively combined with state-owned enterprises’ mixed reforms.In recent years,scholars have continued to research and explore how to use debt-to-equity swaps to accelerate the process of corporate reform and promote high-quality development of enterprises.When the government began to issue relevant policies and supporting opinions in 2016,and included debt-to-equity swaps in corporate reform decisions again,a new round of corporate debt-to-equity swaps was officially launched.Since the development of debtto-equity swaps,many debt-to-equity contracted projects have achieved the process from landing to exit.This paper will analyze the changes of debt-to-equity swaps under the characteristics of marketization and the impact of debt-to-equity swaps on enterprises through case studies.In this essay,it analyzes the debt-to-equity swaps of Shandong Luqiao,a large local state-owned enterprise,and conducts in-depth research on the motives,effects and potential risks of implementing debt-to-equity swaps.First,it summarizes the research results of the domestic and foreign academic circles on the motivations,risks,and effects of debt-to-equity swaps;secondly,it explains the definition and characteristics of debt-to-equity swaps and corporate mixed ownership reforms,and analyzes how debt-to-equity swaps work based on relevant theoretical foundations.In the enterprise mixed reform,it provides a supporting basis for the case study of this article;Then,After a detailed comparison of the two debt-toequity swap differences,the paper expounds the changes in the use of debt-for-equity swaps and the evolution of debt-for-equity swaps model in recent years,and analyzes the characteristics of the debt-for-equity swaps model used in this paper and the reasons for choosing the case.Then,it introduces the progress of the debt-for-equity swap case of Shandong Road and Bridge in detail.When analyzing the operating conditions before the debt-to-equity swap,it is found that the company is before the implementation of the debtto-equity swap.There are problems such as rising current liabilities,low revenue growth and low profit levels.In terms of debt-to-equity swaps,analysis is carried out based on the development of the industry and the development of corporate business models.Finally,in the process of case analysis,the economic effects and pricing mechanism are analyzed.Indepth analysis was carried out in several aspects such as the reasonableness of the valuation in,the dividend income of investment institutions during the debt-to-equity swap period,and the potential risks were identified,and corresponding risk management measures were proposed.The conclusions of the study found that,from the perspective of corporate debtto-equity swaps,companies are not only to alleviate short-term debt pressure,but their own development needs may be the main driving force for companies to choose debt-to-equity swaps.As for the change of the debt-for-equity swap model,it fully reflects the marketization characteristics of the new round of debt-for-equity swap.On the basis of the previous model of debt repayment through issuance of shares,a "two-step" debt-for-equity swap plan has been further explored.In terms of the implementation effect of debt-for-equity swaps,the changes of enterprises’ performance and ownership structure are particularly obvious.Moreover,whether the subsequent exit channels can satisfy all parties and achieve the smooth exit of investment institutions depends on whether the valuation and pricing are fair and reasonable.In addition,in the key steps of the debt-to-equity swap plan,there will still be operational and interest risks that cannot be ignored,and corresponding risk aversion measures need to be taken to further prevent the risks caused by market-oriented debt-toequity swaps.Finally,some suggestions are made for the entire debt-to-equity swap process,hoping to provide a reference for the subsequent market-oriented debt-to-equity swap practice.The value of the research of this article is to grasp the current development trend and new changes of debt-to-equity swaps at an overall level,and to study how the combination of debt-to-equity swaps and state-owned enterprise reforms can affect corporate reform and governance,with the hope that it can be a follow-up market.The second is to focus on the key points of the debt-to-equity swap project.Through the results,we can see whether the logic of the company’s behavior is reasonable and whether the debt-to-equity swap has actually achieved the expected results.The details of the stocks are improved and risk prevention provides some ideas.