Research On The Motives And Effects Of Bankruptcy Reorganization Of Assetlight Listed Companies

With the implementation of the registration system and the development of the capital market in China,more and more enterprises have been successfully listed,or may be listed in the future,becoming the main body that cannot be ignored in the process of national economic development.The sustained and healthy development of listed companies is crucial to China’s economic structure and development level.However,due to the world’s overcapacity,China’s economic development slowdown and the continuous optimization of industrial policies,some listed companies have failed to keep up with the pace of market changes,and there are high asset-liability ratios and low operating profit margins due to poor management,and they cannot maintain operations under the impact of the new crown epidemic and stricter financial supervision.Considering the particularity of listed companies,if they cannot properly solve their difficulties and withdraw from the capital market,the impact will be very extensive and the consequences will be extremely bad.Therefore,how listed companies can get rid of financial difficulties and continue to develop has become an urgent problem to be studied and solved.The Enterprise Bankruptcy Law of the People’s Republic of China promulgated in2007 clearly stipulates the content of enterprise bankruptcy reorganization,standardizes the bankruptcy reorganization of enterprises,and provides enterprises with more ways of bankruptcy reorganization.The bankruptcy reorganization of enterprises is no longer limited to liquidation and reconciliation.In the same year,China’s first bankruptcy reorganization system focused on rescuing enterprises with regenerative value,providing opportunities for many financially troubled enterprises,including listed companies,to be reborn.For more than ten years,enterprises that have implemented bankruptcy reorganization have become the object of research by many scholars.However,due to the late introduction of China’s bankruptcy reorganization system,the main body of domestic research on bankruptcy reorganization is mainly traditional asset-heavy enterprises,while there is only one asset-light enterprise,and the types of research objects need to be further enriched.Based on this,this thesis adopts the case study method,selects the first asset-light listed company Tianyu Digital,as a typical bankruptcy reorganization research object,and focuses on the core theme of how bankruptcy reorganization can help asset-light listed companies get out of difficulties,and studies the motivation and effect of Tianyu Digital’s choice of bankruptcy reorganization.Through analysis,it is found that Tianyu Digital chose bankruptcy reorganization after comprehensive consideration of many factors such as industry factors,the company’s own factors and the interests of other stakeholders,and the company has a high reorganization value.At the end of 2020,Tianyu Digital completed the bankruptcy reorganization implementation process,and implemented a full debt-to-equity swap in terms of debt restructuring to get rid of financial difficulties and optimize the capital structure;In terms of business strategy reorganization,the dual engine of "e-sports + data traffic" will promote the development model of enterprises and empower enterprises to restore their business capabilities.Using the event research method,financial index method,EVA momentum and other methods to analyze the company’s performance before and after the restructuring,it is found that Tianyu Digital has good market performance,and the company’s solvency,operation and profitability have also improved compared with before the restructuring,but the company’s overall situation is slightly weaker than that of peers,and it is still necessary to continue to adjust the company’s business strategy to make the company’s operation continue to improve.This thesis summarizes the conclusions of the bankruptcy reorganization case against the background of the bankruptcy reorganization case of Tianyu Digital,and provides enlightenment for the implementation of restructuring of other asset-light enterprises.Through the above-mentioned research on the bankruptcy reorganization case of Tianyu Digital,it is found that for enterprises with operational value,they are more inclined to choose bankruptcy reorganization.Rational use of the advantages brought by the bankruptcy reorganization system can avoid exiting the capital market,help restore the ability of enterprises to operate,and better protect the interests of all parties.This thesis aims to use the case of Tianyu Digital to complete the restructuring at low cost and high efficiency,and provide experience for the subsequent bankruptcy reorganization of asset-light listed companies.