Study On The Motivation And Implementation Effect Of Market-oriented Debt-to-equity Swap In Valin Steel

By the new normal and cyclical industry many factors,such as periodic strong high-quality business will face difficulties or the plight of poor profitability in order to have financial difficulties as soon as possible,on the premise of fully considering the financing costs,companies tend to leverage through the way of bank loan,but the resulting high leverage also brings to the enterprise the high debt risk in fact as early as the 1990 s,our country has carried on the policy of debt turn to dissolve the state-owned enterprise high debt ratio,although in the short term,but later returned to the trapped again In 2016,based on the experience of policy-based debt-to-equity swaps,China carried out market-oriented debt-to-equity swaps.The implementation of market-oriented debt-to-equity swaps can not only help enterprises to deleverage,but also reduce their financial risks and improve their governance structure,so as to inject new vitality into the medium and long-term development of enterprises.As the largest state-owned listed company in the iron and steel industry of Hunan province,the market-oriented debt-equity swap project implemented by Valin iron and steel has realized the market precedent of local state-owned enterprises' incremental asset injection and debt-equity swap operation of listed companies,which has great research value.So this article selected Valin iron and steel as the research object,using the case study method and comparative research methods,through the Valin iron and steel market of debts into shares,and analyzing the enterprise effect,not only can provide a new sample operation mode,can also effect of stock market of our country debt provide some feedback.This paper first introduces the relevant background and basic theory,and then introduces the basic situation of the debt-equity swap operation process and the program progress of valin iron and steel.Secondly,from the macroeconomic downward pressure of the steel industry cyclical difficulties and their own needs,the paper analyzes and summarizes the case of the company to carry out market-oriented debt-equity swap motives;Finally,using the resources company public data valin iron and steel's solvency ability to operating profitgrowth ability each related statistics and analysis of the change of financial indicators,and valin iron and steel after the implementation of market-oriented debt convertible equity structure affects the governance structure and investment behavior of the influence of non-financial effect is analyzed,summed up the following conclusions:(1)the marketization of debt turn to improve enterprise's financial situation;(2)market-oriented debt-to-equity swap is conducive to the sustainable development of enterprises;(3)Suggestions for other enterprises to implement market-oriented debt-to-equity swaps :(1)target enterprises should be effectively selected for market-oriented debt-to-equity swaps;(2)an effective restriction and supervision mechanism should be formed between market-oriented debt-to-equity enterprises and creditors;(3)the process of market-oriented debt-to-equity swap should adhere to the principle of market-oriented legal system;(4)exit channels should be diversified as much as possible;(5)the role of the government should be clearly defined in the implementation process.