Research On The Path And Effect Of The Bankruptcy Reorganization Of Lifan Shares

With the transformation of China’s economic structure,the pressure on the country to address the risk of overcapacity and corporate debt has gradually increased.Many listed private enterprises have been forced to go bankrupt due to capital shortages,market changes,and their weak ability to resist risks.In October 2020,the government issued the "Opinions of the State Council on Further Improving the Quality of Listed Companies",proposing to improve the exit system and facilitate diversified exit channels.In November 2022,the Securities Regulatory Commission issued the "Three Year Action Plan for Promoting the Quality of Listed Companies(2022-2025)",which explicitly proposed to optimize the bankruptcy reorganization system of listed companies and support qualified and salvage worthy distressed companies to achieve rebirth through bankruptcy reorganization.With the attention paid to bankruptcy reorganization by all parties,more and more enterprises hope to apply bankruptcy reorganization to escape from difficulties.Therefore,this article hopes to explore effective reorganization paths for the rebirth of private enterprises through case study of enterprises,and enrich research in relevant fields.This dissertation selects Lifan Shares,the first listed private enterprise in the auto and motorcycle industry that went bankrupt and reorganized,as the research object.Based on the synergy theory,the signaling theory,the property rights theory and the stakeholder theory,this paper adopts the case study method and the event study method to carry out the research.By sorting out the difficulties and advantages Lifan Shares faces in terms of debt,governance and operation,explore the unfolding of its restructuring path,and analyze the actual effects of the reorganization path.In the analysis of the reorganization path,it closely focuses on funding,governance,and business,and sorts out and analyzes the planning and impact of the path;In the analysis of reorganization effectiveness,based on funds,governance,and business,a comprehensive application of market response,financial performance,corporate governance,and stakeholder influence is applied to study the actual reorganization effectiveness of Lifan.Through the research on the path and effect of Lifan’s bankruptcy reorganization,it is found that the difficulties and advantages faced by the reorganization enterprises affect the direction of the reorganization path.On this basis,reorganization methods such as comprehensive debt repayment,introduction of strategic investors,and partial asset divestiture have been adopted to promote the completion of capital,governance,and business paths,achieving good financial and non-financial performance,with significant reorganization results.At the same time,the path of reorganization is also the result of stakeholder gaming,and a good reorganization effect maximizes the overall interests of stakeholders.In theory,this article explores the path of corporate reorganization and the effects of the research path on reorganization through the three dimensions of capital,governance,and business,as well as specific methods that combine different dimensions.It complements the research on reorganization operations and governance,provides more ideas for the research on the path and effects of bankruptcy reorganization,and enriches relevant research.In practical applications,focusing on the reorganization path and effectiveness can provide referential experience for private enterprises to resolve crises through the market-oriented and legalized approach;It helps to encourage reorganization investors to innovate ways to participate in reorganization and reduce investment costs;It can also promote relevant institutions to improve the market exit mechanism,further encourage enterprises to effectively resolve crises through reasonable reorganization paths,and promote the healthy and orderly development of the market.