Analysis Of The Bailout Operation And Effect Of Private Enterprises

As an important force for the continuous growth of my country’s national economy and rapid social development,private enterprises have made important contributions to my country’s employment,social stability and technological innovation.However,with the increasing downward pressure on my country’s economy,private enterprises have become more and more bumpy on the road of development and operation.On the one hand,they are caught up in the "credit discrimination" caused by the information asymmetry and ownership nature between banks and businesses.which makes them prone to financing difficulties.On the other hand,it is trapped in the risk of forced liquidation brought about by the high equity pledge ratio,and faces the risk of changing ownership of control.Based on this,since 2018,local state-owned assets have taken measures to relieve the operating difficulties of private listed companies,and have introduced a series of supportive policies,mainly through the establishment of local relief funds,to help private enterprises tide over the difficulties..Due to the short development history of my country’s private enterprise bailout and strong localization characteristics,domestic related research is relatively scarce,and foreign literature research is limited for reference.How to effectively use the bailout funds,protect the rights and interests of all stakeholders and introducing the private economy into a healthy and benign development path are worth exploring in depth.Moreover,the existing domestic related research literature mostly starts from the macro-level or theoretical level to analyze the overall effect and risk of bail-out,and make suggestions for the formulation and optimization of government bail-out policies.In addition,the existing literature on the financing constraints of private enterprises,bailout funds and other issues involved in the bailout of private enterprises are mostly empirical studies,and related case studies are relatively lacking.This thesis selects Welle as the case study object.Welle accepted the strategic shareholding of Changzhou Development Fund in November 2019,which is also a relatively successful case in Changzhou’s bailout.After systematically reviewing the literature on financing constraints,equity pledges and bailout effects of private enterprises in the previous part,this thesis first expounds the concept,development and basic methods of bailout of private enterprises from the theory,and analyze the motivation of private enterprises to rescue;This thesis presents the background of the Welle bailout,and uses the event study method to measure the changes in excess returns before and after the announcement of Welle’s bailout.Combined with the financial statement analysis method,it conducts an in-depth analysis of the performance of the company from 2019 to 2020 after Welle’s bailout.dissect.According to the analysis of this thesis,after Changzhou Development Fund became a shareholder,both the excess rate of return and the progressive excess rate of return of Welle have been significantly improved.Ability has been improved to varying degrees.Finally,this thesis conducts a comprehensive analysis of the specific impact path of Changzhou Development Fund’s investment in WelleThrough the analysis of Welle’s bailout cases,this thesis draws the following research conclusions: first,the bailout funds alleviated Welle’s liquidity risk;Difficulty brought a positive wealth effect to Welle.Based on this conclusion,the following research implications are drawn: first,fund managers should establish criteria for screening bailout objects;second,design a bailout plan that takes into account the interests of both parties;third,both parties should strengthen the disclosure of bailout-related information;Fourth,the fund side should establish an effective supervision system.With the continuous development of my country’s private economy,there are bound to be more and more private enterprises that may use the bailout.Therefore,this article summarizes the relevant experience and the effectiveness of the Welle bailout informs private enterprises that hope to be rescued by introducing state-owned assets in the future.Provide referenced empirical and theoretical guidance.