The Impact Of Asset Specificity On Debt Restructuring Under Different Capacity Utilization Rates

With the continuous development of market economy,the mature securities market and related economic system provide a broader platform for the survival and development of Listed Companies in China.However,with the fiercer competition in various aspects such as operation and management,the survival of the fittest and the survival of the fittest become the way for enterprises to survive.Especially for listed companies,if they want to achieve stable operation of enterprises,they need to stimulate the improvement of economic efficiency through various economic means.Among them,debt financing has attracted special attention of listed company operators and profit-related personages.In the process of competition,many companies are in trouble because they can’t resist the fierce competition.Finally,the capital chain is broken and the enterprises are facing financial crisis.In addition,with China’s economic development entering a new normal,the Central Economic Work Conference proposed the structural reform of supply side,in which capacity removal is the top five tasks of the structural reform of supply side in China.At this time,timely solving the financial difficulties of listed companies,effectively solving the excess capacity of enterprises,and optimizing the supply-side structure has become a hot topic.The New Bankruptcy Law of 2007 stipulates three legal procedures:bankruptcy liquidation,reorganization and reconciliation.The debtor chooses bankruptcy,the legal procedure is complex,the effective utilization of debt resources is destroyed,and the creditor’s rights may suffer greater losses.Debt restructuring is to fully integrate the debtor’s effective resources,so that creditors can recover their rights as much as possible,which is helpful to solve the disputes between creditors and debts.Listed companies in financial distress have good prospects for development and perfect internal management.If they use debt restructuring methods correctly,they can get rid of heavy liabilities and return to a healthy track.It can not only protect the interests of creditors,but also protect the rights and interests of shareholders.It is a win-win choice for both creditors and shareholders of enterprises.Scholars at home and abroad have studied the definition of financial distress for a long time,but so far there is no unified conclusion.However,through combing the existing research results,we can find that defining financial distress from the perspective of cash flow occupies the mainstream position of relevant research.This paper also uses cash flow to define financial distress.The final results show that there is a significant positive correlation between asset specificity and debt restructuring.At the same time,when studying the relationship between asset specificity and debt restructuring,the index of productivity utilization is added to study whether the relationship between asset specificity and debt restructuring will be strengthened or weakened under different productivity utilization.Through theoretical analysis and empirical research on asset specificity and debt restructuring under different productivity utilization rates.There are two main innovations in this paper.First,domestic scholars generally study the relationship between debt restructuring and earnings management,but this paper mainly studies the relationship between asset specificity and debt restructuring of Financial Distressed companies,enriching the empirical study of debt restructuring.Secondly,in terms of the incentives for debt restructuring,this paper combines the current demand of "de-capacity" in the supply-side reform,and adds the index of capacity utilization rate to classify the capacity of enterprises in financial distress,and studies the relationship between asset specificity and debt restructuring under different capacity utilization rates,which enriches the experience of financial distress research.In this paper,the impact of asset specificity on debt restructuring under different productivity utilization rates is also inadequate.Firstly,the sample has some limitations,including only A-share listed companies.Secondly,the selection of explanatory variables and control variables is based on the principle of importance,and there are limitations of the indicators that are not comprehensive enough.Thirdly,when grouping production capacity,the median value of the creative use industry in this paper is based on,while innovating,there is also a certain degree of subjectivity.In a word,this paper has certain significance for listed companies to judge their own financial situation according to their capacity utilization level and asset specificity.Companies in financial distress can better analyze their own problems,get out of financial distress faster,and maintain the company’s sustainable operation and development.