The Impact Of Market-oriented Debt-to-equity Swap On Capital Structure And Configuration Of Control Power

In recent years,the overall economy in our country tends to go downward.Many enterprises fall into the dilemma that they are too high leverage ratio and difficult to sustain development.At the same time,non-performing loans are also very high.Facing the complicated situation,in order to reduce the debt ratio of enterprises,provide financing funds and improve enterprise governance,the country began to implement market-oriented debt-to-equity swap.By converting creditor’s rights into equity,market-oriented debt-to-equity swap not only reduce the scale of liabilities of enterprises and reduce the financial pressure of enterprises,but also make the ownership structure of enterprises more diversified through the participation of implementing institutions,so as to improve the governance structure and operation status of indebted enterprises.AECC AP is the first market-oriented debt-to-equity swap project in the aviation and military industry,so the study of its impact on capital structure and configuration of control power after the implementation of market-oriented debt-to-equity swap will not only help to improve the theoretical system of market-oriented debt-to-equity swap,but also provide good experience for other enterprises planning to implement market-oriented debt-to-equity swap.The article selects AECC AP as the research object and firstly sorts out the research results of domestic and foreign experts on debt-to-equity swap,introduces the concepts of market-oriented debt-to-equity swap,capital structure,control power,and analyzes the impact mechanism of debt-to-equity swap on capital structure and configuration of control power,and expounds the theory related to capital structure and configuration of control power;Secondly,it introduces the implementation process of the market-oriented debt-to-equity swap of AECC AP,and analyzes the motivation of the implementation of market-oriented debt-to-equity swap.Then it illustrates the impact of market-oriented debt-to-equity swap on the capital structure of AECC AP from the two aspects of the impact on equity structure and debt structure.Then it analyzes the impact of market-oriented debt-to-equity swap on the configuration of control power from the three aspects,including the impact of debt-to-equity swap on the configuration of control power among creditors,shareholders and other parties,the impact of debt-to-equity swap on the configuration of control power between small and medium shareholders and major shareholders and the impact of joining the ownership structure of the implementing institutions on the configuration of control power of AECC AP.Finally,the conclusion is drawn: Through market-oriented debt-to-equity swap,AECC AP obtains the equity financing funds,and achieve the goal of deleveraging,optimizing the capital structure,the debt-to-equity swap also has an impact on the company’s configuration of control power,the control power of the company is changed from that of the creditors to that of the major shareholders,at the same time,because of the joining of implementing institutions,thus improving the corporate governance structure,perfecting the corporate governance mechanism,producing a positive effect on accelerating enterprise reform.Therefore,it is hoped that it can be useful for other enterprises to implement the market debt-to-equity swap and contribute to the perfection of our market debt-to-equity swap system.