Analysis Of The Motivation,path And Effect Of Bankruptcy Reorganization Of Listed Companies

Many listed companies have experienced financial crisis in the development of China’s capital market.How to make these enterprises walk out of the dilemma and realize their operating value is a common topic.In 2007,the new "Enterprise Bankruptcy Law" formally brought bankruptcy reorganization into the corporate bankruptcy path,providing a new crisis relief mechanism for enterprises in financial distress.Since 2018,the number of listed companies subject to bankruptcy reorganization has increased rapidly,the capital market has become more cognizant of the recognition of the bankruptcy reorganization of listed companies,and the government,regulators,courts and stakeholders have become more and more active in the bankruptcy reorganization of listed companies.In this context,bankruptcy reorganization,as one of the important ways to solve the financial difficulties of listed companies,can not only help enterprises to solve debt problems and resume normal operation,but also optimize resource allocation and promote industrial upgrading for enterprises.However,some listed companies have temporarily solved the debt crisis through bankruptcy reorganization,but have failed to restore sustainable operation and profitability.Then,why do enterprises need bankruptcy reorganization and how about the effect of bankruptcy reorganization? Based on this,this paper analyzes the motivation,path and effect of listed companies’ bankruptcy reorganization.Taking Lotus Health as the research object,this paper studies the causes and effects of listed companies’ bankruptcy reorganization and the influence of reorganization measures on reorganization effects.Specifically on the following three issues:(1)To study enterprises into financial difficulties and the causes of bankruptcy reorganization.(2)Path of impact of bankruptcy reorganization on enterprises.(3)Study the effect of enterprises Bankruptcy Reorganization from four aspects: market effect,financial effect,non-financial effect and stakeholders.The study found that:(1)Lotus health into financial difficulties due to environmental policy tightening,industry poor,corporate governance failure and management overconfidence.Based on the theory of operating value,the paper finds out the driving force of regional economy and balancing the interests of all parties from the perspective of economic value and social value.(2)This paper analyzes the impact path of bankruptcy reorganization on enterprises from four dimensions: firstly,improving the management ability of enterprises and thus affecting the profitability of enterprises by introducing professional managers and appointing strength managers to carry out corporate governance reorganization;secondly,reducing the asset-liability ratio of enterprises and thus affecting the solvency of enterprises by effectively stripping off non-performing assets and carrying out asset reorganization;thirdly,improving the core competitiveness of enterprises and thus affecting the profitability of enterprises by selecting appropriate strategies and adjusting business operations;and fourthly,ensuring the adequacy of funds and thus affecting the solvency of enterprises by introducing strength reorganization investors.On the basis of this,we get two favorable conditions of employee participation and government participation to ensure the success of bankruptcy reorganization.(3)Bankruptcy reorganization can improve the share price of the enterprise,improve the solvency,profitability,operating capacity and growth capacity of the enterprise,have a positive impact on non-financial indicators,safeguard the interests of major shareholders,small and medium shareholders and creditor’s rights,safeguard the legitimate rights and interests of the company’s employees and protect local stability and tax revenue for stakeholders.