Study On The Impact Of Corporate Transformation On The Profitability Of CSC Phoenix Under The Background Of Market-Oriented Debt-to-Equity Swap

With the development of China's economy,the comprehensive strength is constantly improving,the number of enterprises is increasing,and the scale of enterprises is also expanding,which makes China's economic environment more and more complex,and the competitive pressure of enterprises is also increasing.Many industries seem calm as water,but in fact,the undercurrent is surging.In order to develop,more and more enterprises are willing to take huge risks to blindly expand,and finally fall into the situation of financial crisis.In order to alleviate the financial crisis and avoid bankruptcy and bankruptcy,enterprises hope to obtain new life through debt restructuring,so the market-oriented debt-to-equity swap comes into being.On October 10,2016,the state council issued the opinions on actively yet prudently reducing the leverage ratio of enterprises and the guidance opinions on the debt-to-equity swap of market-oriented Banks,marking the official opening of this round of debt-to-equity swap.Although there are many researches on market-oriented debt-to-equity swaps,there are few researches on the improvement of profitability of enterprises by implementing market-oriented debt-to-equity swaps.Therefore,this paper takes Chang Jiang Shipping Group Phoenix Co.,Ltd,the first enterprise in China to implement market-oriented debt-to-equity swap,as the case object(this paper is referred to as CSC Phoenix),hoping to provide a reference opinion for enterprises that implement market-oriented debt-to-equity swap in the way of enterprise transformation.Firstly,this paper sorted out relevant researches on market-oriented debt-to-equity swap,enterprise transformation and profitability at home and abroad.As a theoretical basis,it provided relevant theoretical basis for analyzing how CSC Phoenix's profitability was changed.Second,this article from CSC Phoenix implementation of marketization of debts into shares,found that the marketization of debt convertible for the enterprises to actualize the creditors in order to safeguard their own rights and interests,and the rights and interests of creditors is the result of corporate profitability,so that creditors will promote the transformation plan of the enterprise so as to realize the purpose of protect their own rights,long-endurance Phoenix can use market debt convertible under the background of transformation plan of the enterprise enhance profitability.Thirdly,through the standard value of enterprise performance evaluation and the double difference method,this paper compares and analyzes the profitability of CSC Phoenix before and after the transformation,and finds that the transformation plan has a significant effect on the profitability improvement of CSC Phoenix,which is mainly reflected in the improvement of enterprise efficiency.Fourth,based on the above results,this paper analyzes the impact of the transformation plan on profitability under the background of market-oriented debt-to-equity conversion,and divides the analysis into two aspects,namely,cost reduction and income improvement,and explores the internal mechanism of the profit model of shipping industry based on service profit chain.Finally,on the basis of the previous research,this paper puts forward conclusions and enlightenment.This paper makes an in-depth analysis of the case of CSC Phoenix's market-oriented debt-to-equity swap,and draws the conclusion that the transformation plan under the background of market-oriented debt-to-equity swap can indeed improve the profitability of enterprises,which is mainly reflected in the improvement of enterprise efficiency,and that market-oriented debtto-equity swap can promote enterprise transformation,and draws enlightenment based on the conclusion.