Research On Debt Restructuring Of Listed Companies In China

With the development of China’s capital market and the stock market, the growing size of the market, the size of China’s listed companies also will continue to grow, followed by increasingly fierce competition among listed companies.Companies increasingly high business risks, many companies due to operational problems lead to capital dysfunctional, ultimately unbearable debt burden leads to bankruptcy. In this case the debtor and creditors to seek a more appropriate minimum loss of a way to deal with debt problems, then appeared the so-called debt restructuring. This way to resolve debt disputes have great positive significance for China’s economic development. On the one hand it can improve some of the unreasonable debt structure of listed companies by the presence, on the other hand it can avoid delisting or bankruptcy risk. China’s first formulated and issued guidelines for special specification debt restructuring in 1998. However, the current debt restructuring guidelines are not always reasonable, as well as fair value gains of debt restructuring reintroduced so that listed companies have earnings management space.This text stands debtor’s perspective, the impact on existing listed companies through debt restructuring of relevant research literature to sort out, and debt restructuring-related basic theory analysis. On this basis, the paper ST Northwest bearing company as a case study of literature and case analysis method of combining to listed companies to analyze and research activities through the implementation of the debt restructuring earnings management behavior. Through research and analysis ST Northwest Bearing Company’s financial statements found in Northwest bearing debt restructuring companies use earnings management has a significant positive effect on its operating profit, while ultimately Northwest bearing profitability,avoiding the risk of delisting. In a further debt restructuring Northwest bearing analysis found that corporate solvency, profitability, growth capacity and operating profit and no substantive impetus and Northwest Bearing Company presence inflated profits, hidden enterprise development risks to investors and caused false suspected of operating conditions. Based on the above analysis, we believe that the new guidelinesfor debt restructuring of listed companies certainly has its positive side, but in the implementation process of the problems is undeniable. In order to properly implement the debt restructuring, the text from the national government level; proposed level of listed companies, as well as social supervision level relevant recommendations for improvement of the debt restructuring: improvement of relevant debt restructuring the legal system; listed companies debt restructuring behavior; strengthen the listed corporate debt restructuring Regulatory actions; strengthen internal mechanisms to improve listed companies.hidden enterprise development risks to investors and caused false suspected of operating conditions. Based on the above analysis, the article that the new guidelines for debt restructuring of listed companies certainly has its positive side, but in the implementation process of the problems is undeniable. In order to properly implement the debt restructuring, the article from the national government level; proposed level of listed companies, as well as social supervision level relevant recommendations for improvement of the debt restructuring: improvement of relevant debt restructuring the legal system; listed companies debt restructuring behavior;strengthen the listed corporate debt restructuring Regulatory actions; strengthen internal mechanisms to improve listed companies.