An Analysis On Economic Consequences Of Listed Companies' Bankruptcy Reorganization

Nowadays,China advocates industrial upgrading,many enterprises with overcapacity are facing bankruptcy in the market.Most enterprises choose to quit after experiencing the financial difficulties of insolvency,but there are some enterprises that still are competitive and with market value are waiting for the opportunity to rebirth,bankruptcy reorganization system provides the possibility of rebirth for such enterprises.Since the promulgation of The Bankruptcy Law in China,a large number of distressed enterprises are eager to gain new life through bankruptcy reorganization,and many of them have rebirthed and created positive social value.With the reorganization of the number of cases,bankruptcy reorganization by the attention is also rising.Scholars began to analyze and discuss the various aspects of the reorganization,and the research scope covers the design of China's bankruptcy reorganization system,the implementation and implementation of the restructuring plan,and the analysis of the restructuring effect.The purpose is to promote the perfection of China's bankruptcy system,clarify the importance of bankruptcy reorganization plan,and discuss the role of bankruptcy reorganization.The main research content of this paper is the analysis of the effect of corporate restructuring,through the selection of specific cases,specific and detailed analysis of the impact of restructuring implementation on the economic consequences,to further enhance the understanding of the bankruptcy restructuring,the importance of bankruptcy restructuring.Sichuan Chemical Co.,Ltd.implemented and completed bankruptcy reorganization in 2016.Under the new situation of promoting supply-side structural reform,it successfully realized enterprise transformation and upgrading,demonstrating a successful case of bankruptcy reorganization with low cost and high efficiency,which is of typical significance.This paper,by combing the specific process of Bankruptcy reorganization of Sichuan Stock,elaborates and analyzes the implementation of the restructuring process,and summarizes the characteristics of bankruptcy reorganization of Sichuan Chemical Co.,Ltd..In order to facilitate the understanding,this paper expounds the basic concept of economic consequences in the theoretical overview,and introduces the selection of indicators of economic consequences,and finally determines the four main directions of economic consequences analysis.The first is the analysis of restructuring costs,mainly through the bankruptcy restructuring costs,government subsidies and raising funds threeaspects of the cost statistics and comparison,in the qualitative and quantitative two aspects of the evaluation of enterprise restructuring cost control.Based on the market reaction and financial performance,the research analyzes the changes of the company's stock price and abnormal return rate,and selects reasonable performance measurement index to evaluate the changes of the enterprise's financial performance.When studying the market reaction of bankruptcy reorganization,this paper uses the event study to estimate the excess return of enterprises,so that the data can reflect the impact of bankruptcy reorganization on the capital market.When analyzing the changes of financial performance of bankrupt and reorganized enterprises,this paper collected the financial index data of Sichuan Chemical Co.,Ltd.from 2011 to 2018,comprehensively and objectively reflected the changes of financial indexes,and carried out specific analysis on each index.The analysis object of the rights and interests of the stakeholders includes the shareholders,creditors and employees,and summarizes the changes of the rights and interests of the stakeholders in a comprehensive and detailed manner,so as to evaluate the economic effect of the bankruptcy reorganization.The research finds that Sichuan Chemical Co.,Ltd.adopts a series of low-cost market-based measures to preserve the listing qualification of the enterprise,improve its financial performance,safeguard the rights and interests of multiple stakeholders,and inject vitality into the enterprise.The overall effect of the bankruptcy reorganization of Sichuan Chemical Co.,Ltd.shows good,the enterprise has created a positive economic effect with a lower restructuring cost,the formulation of a new plan in the restructuring plan and the implementation of the restructuring process are of certain practical significance,providing experience and ideas for the bankruptcy reorganization of enterprises.Finally,this paper summarizes the successful experience and enlightenment of Sichuan Chemical Co.,Ltd.case,hoping to provide reference for other enterprises to provide restructuring plan.The first is to ensure the independence of the restructuring manager,independent independent professional third-party manager can effectively reduce the cost of restructuring and improve the efficiency of restructuring;Secondly,to pay attention to the business plan,reasonable business plan is an important prerequisite for the enterprise to continue to operate,to protect the value of bankruptcy reorganization;At the same time,the government also needs to innovate its way of participation,define its role and coordinate well.Finally,attention should be paid to the protection of the rights and interests of stakeholders.Bankruptcyreorganization means the redistribution of property,and it is necessary to balance the interests of all parties to maximize the overall value.Of course,the author also put forward improvement suggestions on the deficiencies of this bankruptcy reorganization,suggesting that enterprises should pay attention to the interests of minority shareholders protection,should also further improve the resale of rights issue pricing mechanism.