Study On The Implementation Effect Of Market-oriented Debt-equity Swap Of Anhui Construction Engineering

At the end of the last century,China’s economy developed rapidly under the background of reform and opening up and market economy.The excessive expansion of enterprises led to financial crisis,which led to major losses of large enterprises,and the rise of the no performe loan ratio of banks.The existence of these problems threatened the normal development of China’s economy,so the government-led debtfor-equity swap started.In 2016,with the proposal of the second round of marketoriented debt-equity swaps,China’s economic development appeared a new trend.In response to the "deleveraging" policy,many highly indebted enterprises and banks began to take the market-oriented debt-equity swap road to solve the unpromising assets in the process of enterprise development and accelerate the development of the economy growth.For banks,the implementation of debt-equity swap policy not only reduces non-performing loans,increases corresponding current assets,but also reduces regulatory pressure.For enterprises,by transferring their liabilities to owners’ equity,the paid-up capital will increase as the liabilities decrease,and the repayment pressure of enterprises will be reduced,so that enterprises can continue to travel lightly to a certain extent.This paper takes Anhui Construction Engineering Co.Ltd.as the research object.Under the background of China’s supply-side structural reform and the impetus of the enterprise’s internal financial difficulties,Anhui Construction Engineering Co.Ltd.initiated the implemention of debt-equity swap.In the first place,this paper expounds the research background and significance of debt-equity swaps,and teases the theories and concepts involved in debt-equity swaps according to the existing studies of domestic and foreign scholars.Secondly,the case selection is typical review,and combined with the macro environment,industry background and other aspects of the implementation of debt-equity swap motivation and operation mode.The third,it analyzes the implemention effect of Anhui Construction Engineering market debt to the equity swap.On financial performance,through the implementation of marketization debts into shares,Anhui construction of asset-liability ratio is reduced,debt paying ability and development ability has improved,but its overall profitability is the marketization of debt turn before improvement is not big,how debt market shares is not everything,to achieve sustainable development,needs the enterprise in defuse financial risks at the same time to complete the transformation and upgrading of the main project.In terms of market performance,through the analysis of event study method,it is found that the excess return rate fluctuates but gradually shows a rising trend,indicating a positive effect.In the capital stock and the governance structure,the company’s capital stock structure,there is room for progress.The finally but not least,in this text,it summarizes the weakness of market-oriented debt-equity swap of Anhui Construction and puts more good corresponding suggestions.This paper takes Anhui Construction Engineering Co.Ltd.as an example to rich the study perspective of market-oriented debt-to-equity swaps,inrich the correlative literature,and provide reference for the future construction industry to put into practice market oriented debt equity swaps.