Research On Debt-to-equity,Investment Efficiency And Financial Performance Of Coal Industry

Debt-to-equity swap is an important market instrument to optimize capital structure and reduce financial risk.In recent years,due to the economic downturn and the transformation and development,the asset-liability ratio of the coal industry has shown an upward trend,which has led to a decline in the overall financing capacity of the industry.The implementation of debt-to-equity swaps in the coal industry is an effective way to resolve the above problems.On the other hand,debt-to-equity swaps diversify corporate governance entities,which in turn affects investment efficiency.At the same time,debt-to-equity swaps affect corporate performance through capital structure.Therefore,the research on the relationship between debt-to-equity swap,investment efficiency and financial performance has an important impact on promoting the implementation of debt-to-equity swaps and improving investment efficiency and financial performance.However,the relationship between the three has not been well revealed in the coal industry.Therefore,this paper mainly studies the relationship between the three,in order to have a positive feedback effect on the implementation of the debt-to-equity swap policy,and also for the coal enterprises.Choose to provide evidence and recommendations for the implementation of debt-to-equity swaps.This paper takes the listed companies in the coal mining and washing industry in Shanghai and Shenzhen as the research object,selects the relevant data for the five years from 2013 to 2017,uses the Richardson residual model to measure the investment efficiency of the enterprise,and uses the factor analysis method to calculate the coal.The financial comprehensive performance level of listed companies,through descriptive statistics,correlation analysis and OLS regression method to empirically analyze the relationship between coal-based listed companies' debt-to-equity swap,investment efficiency and financial performance.The research results show that debt-to-equity swaps are more efficient than non-debt-equity swaps,that is,coal enterprise debt-to-equity swaps can constrain corporate investment behavior and reduce non-efficiency investment of enterprises;debt-to-equity companies have low financial performance In non-debt-for-equity swaps,the comprehensive level of financial performance of enterprises with high investment efficiency will be higher;compared with non-debt-equity swap companies,the implementation of debt-to-equity swaps can improve the positive impact of investment efficiency on financial performance.From the research results,although debt-to-equity swaps can improve the performance level of enterprises to a certain extent,enterprises should make cautious choices according to their own circumstances when considering whether to convert debts.