Research On The Performance Of Market-oriented Debt-to-equity Conversion Of Nangang

At present,China's economy is in a stage of continuous development.Domestic enterprises have seized the opportunity of economic reform and opening up and the market economy to achieve rapid development.But at the same time,they are also facing various and complex risks and difficulties.In recent years,China has introduced a new round of policies of debt-to-equity swap due to the overcapacity,increasing leverage and high debt.The purpose of the government's implementation of this round of marketized debt-to-equity swaps is to promote the structural reformation on the supply side,aimed at helping those enterprises that are temporarily in difficulty but have good prospects to overcome their difficulties,aimed at helping those enterprises that temporarily in difficulty but have good prospects of development to survive.Compared with the first round of debt-to-equity swaps,the participation of private enterprises on the big stage of marketized debt-to-equity swaps has gradually increased.The government also encourages financial institutions to support the development of private enterprises,and optimize the financing structure of enterprises to promote the sustainable development of private enterprises.But what kind of effect will the debt-to-equity swap bring to the enterprise,and can the enterprise achieve economic recovery through debt-to-equity swap? Based on the above background and purpose,this paper selects Nanjing Iron Steel,a private listed enterprise,and takes the case of marketized debt-to-equity swap as the research object to explore the reasons of marketized debt-to-equity swap of Nanjing Iron Steel and analyze the ways in which the marketized debt-for-equity swaps affect performance.And it contrastively analyzes the real changes in the performance of Nanjing Iron Steel before and after the marketized debt-to-equity swap,hoping to provide corresponding inspiration and suggestions for the same type of debt-to-equity swap.Primarily,this paper makes a distinction between domestic and foreign literatures,and mainly summarizes the relevant literatures on the motivation of debt-to-equityswap,the path to performance of debt-to-equity swaps and the implementation effect of debt-to-equity swap.Additionally,the relevant concepts of marketized debt-to-equity swap are defined and the theories related to debt-to-equity swap are expounded,including the MM theory,the trade-off theory and the agency theory.And next,the basic situation and business situation of Nanjing Iron Steel,the motivation of the debt-to-equity swap,and the relevant situation of the marketized debt-to-equity swap process are introduced in detail.After that,the way in which the marketized debt-to-equity swap of Nanjing Iron Steel affects enterprise performance is analyzed,and finally the implementation effect of marketized debt-to-equity swap of Nanjing Iron Steel is analyzed from market performance and financial performance.The event study method is used in the study on the market performance,while the financial ratio analysis is used in the study on financial performance.Ultimately,it is concluded that the debt-to-equity swap played an important role in this case,remarkably promoted the company's financial performance,and laid a good foundation for the enterprise's long-term development.Finally,in order to make the debt-to-equity swaps play a more important role,the following enlightenment is drawn: adhere to the principle of marketization,and reflect the significance of marketized debt-to-equity swaps;Fully improve the marketized debt-to-equity program to ensure the smooth process of debt-to-equity swaps.After the implementation of marketized debt-to-equity swaps,enterprises are supposed to improve their capabilities of sustainable development and strengthen their business.