Research On The Motivation And Effect Of Enterprise Bankruptcy Reorganization

With the continuous adjustment of my country's economic structure and the continuous optimization and change of industry policies,a large number of private enterprises have failed to keep up with the pace of market changes,their product structure is unreasonable,and high asset-liability ratios go hand in hand with low operating profit margins.After experiencing the sudden blow of the new crown epidemic,they are unable to support their continued operations.Faced with the economic impact of the global epidemic that has not yet been completely eliminated,many companies have to choose to withdraw from the dilemma of insolvency.However,there are still a group of companies that are actually competitive and valuable in the market looking for opportunities to regenerate.The bankruptcy and reorganization system provides a way for such companies to regenerate.This paper takes Zeus Entertainment's bankruptcy and reorganization as an example to study the motivations,measures and effects of its bankruptcy and reorganization from the perspective of corporate value and stakeholders,hoping to provide reference for Chinese enterprises to overcome the crisis.Based on the topic of bankruptcy reorganization,this paper reviews the relevant literature and theories of bankruptcy reorganization motivation,benefit protection and effect evaluation.This paper selects Zeus Entertainment,a typical Internet light assets private listed companies,the industry and the nature of the company is also with the past bankruptcy restructuring of the industry has a greater difference.Zeus Entertainment completed bankruptcy restructuring at the end of 2020,debt restructuring,after the implementation of full debt-to-equity conversion,out of the debt crisis,optimize the performance of enterprise debt service,and business strategy restructuring,the realization of video game data traffic dual-engine to promote enterprise development model,for the long-term development of enterprises continued to empower.First of all,this paper analyzes the causes of its bankruptcy situation by combing the development of the Internet game industry and the change of Zeus Entertainment's own financial and business situation,secondly,analyzes the conditions under which Zeus Entertainment can carry out bankruptcy reorganization from the perspective of operating value theory,analyzes the motivation of Zeus Entertainment's final choice of bankruptcy reorganization from the perspective of social standard theory,at last,studies the concrete measures of Zeus Entertainment's bankruptcy reorganization,analyzes its effect on the financial performance index of enterprises.Also from the perspective of stakeholders to analyze the impact of Zeus entertainment bankruptcy reorganization on various stakeholders,evaluation of its restructuring effect.Through the above research on the bankruptcy and reorganization of Zeus Entertainment,it is author found that for companies with operational value,they are more inclined to choose bankruptcy and reorganization and are more supportive in policy.Reasonable use of the advantages brought by the bankruptcy and reorganization system can avoid exiting the capital market,restore the vitality of the enterprise,and better protect the interests of all parties.This article aims to use Zeus Entertainment's low-cost and high-efficiency reorganization to provide reference for future private enterprises or Internet companies when they are in trouble,and to provide reference suggestions for protecting the rights and interests of stakeholders when enterprises implement bankruptcy reorganization procedures.