Research On The Implementation Effect Of Market-Oriented Debt-to-Equity Swap In Shandong Hi-Speed Road And Bridge Group Co.,Ltd

For a long time,China has been faced with the development trend of economic structure optimization and adjustment,industrial transformation and upgrading,and the economic development has been faced with the severe situation of excessive overall leverage ratio and high asset and liability level in some industries.Especially in recent years,the cyclical characteristics of large and medium-sized state-owned infrastructure construction enterprises,the leverage ratio has exceeded the warning line all the time,facing serious financial crisis.In 2015,the supply-side structural reform policy was put forward,focusing on promoting the "three deleveraging,one reduction and one subsidy." Under this policy background,debt-equity swap is given the meaning of "marketization" and proposed again.Under the policy support,Shandong Hi-Speed Road And Bridge Group Co.,Ltd,a large state-owned enterprise facing financial difficulties,took the lead in the exploration of debt-equity swap in the whole infrastructure construction industry,and achieved remarkable results.This paper takes Shandong Hi-Speed Road And Bridge Group Co.,Ltd as the research object,based on principal-agent theory,stakeholder theory,trade-off theory and Fisher debt theory,this paper analyzes the motivation of market-oriented debt-to-equity swaps and introduces the implementation process of market-oriented debt-to-equity swaps in detail.Finally,it comprehensively analyzes the effect of Shandong Hi-Speed Road And Bridge Group Co.,Ltd’s implementation of debt-equity swap,including the impact on corporate governance structure,corporate financial performance and the impact on the third party subject,and summarizes and analyzes the potential risks of market-oriented debt-equity swap on the implementation subject.Finally,relevant conclusions and research implications are drawn.The results show that:(1)Shandong Luqiao has improved its corporate governance structure and corporate governance level through the implementation of market-oriented debt-equity swap.The introduction of third-party asset management institutions in the process of market-oriented debt-equity swap makes the equity structure of the company tend to be diversified,improves the phenomenon of "one dominant share",enhances the balance of equity,and improves the daily operation decision-making level of the company,which is conducive to promoting the long-term sustainable development of the enterprise.(2)The market-oriented debt-equity swap of Shandong Hi-Speed Road And Bridge Group Co.,Ltd has repaid the company’s debt in advance,reduced the asset-liability ratio of the company,resolved the financial dilemma,continuously improved the profitability and operating capacity of the company,and significantly enhanced the overall operating performance.(3)The implementation of market-oriented debt-to-equity swap in Shandong Hi-Speed Road And Bridge Group Co.,Ltd also has a positive impact on the third party subjects including lending banks and investment institutions.The loans issued by commercial banks were recovered on schedule or even in advance,which resolved the non-performing loan risks of banks in advance.After the debt-equity swap,the profitability of enterprises has been significantly improved,and the dividends distributed to shareholders at the end of the year have also increased,and investment institutions have obtained higher investment returns.