Study On The Capital Structure And Allocation Of Control Rights Of China Shipbuilding Industry Co.,Ltd.debt-to-equity Swap

Nowadays,the global economy is undergoing downturns,and China's economy has also entered the "new normal".Many industries with overcapacity have fallen in profitability.At the same time,they are facing high debts and low asset turnover,and banks' non-performing assets are also increasing.Therefore,under the policy requirements of supply-side reform to reduce leverage,how to reduce the debt ratio of enterprises,adjust the industrial structure of enterprises,eliminate backward production capacity through a new round of debt-to-equity swaps,.and accelerating the sustainable development of enterprises have become a important topic in the current reform.Under the above background,the author selects CSIC's market-oriented debt-to-equity swap as the study object.Based on the literature sxmimary of the debt-to-equity theory and related research,the author first sorts out the background of the implementation and process of the case,including the sources of CSIC's debt?motivation of debt-to-equity swap and the implementation of the "two-step"debt-to-equity swap.Then,the author analyzes the impact of debt-to-equity swaps on CSIC's capital structure from two aspects:the equity structure and the debt structure.Among them,the author analyzes the changes in CSIC's equity financing and equity structure after the debt-to-equity swap.In terms of debt structure,the author analyzes it from two aspects:debt financing and financial leverage.Last but not least,the author analyzed the allocation of control rights in this case.The author first analyzes whether the allocation of control rights among creditors,shareholders,and managers has changed based on the theory of "dependency of control rights' and then analyzes the allocation of control rights between major shareholders and small and medium shareholders.So far,the author has reached the conclusion that the power of control is still in the hands of major shareholders,and then the author further proves the foregoing conclusion from the perspective of whether the eight newly introduced investment institutions have obtained the benefits of control.After analyzing the case of CSIC's debt-to-equity swap,the following conclusions can be drawn:first,in terms of equity structure,CSIC's debt-to-equity swap provides CSIC with long-term capital support,and there has been a reduction in cash flow pressure and operating difficulties,and their financing costs.At the same time,debt-to-equity swaps have further increased the proportion of CSIC's state-owned shares and lowered the proportion of public shares.In terms of debt structure,after the debt-to-equity swaps,CSIC's capital-liability ratio has dropped significantly,and expense-based interest expenses have fallen significantly year-on-year,and the return on assets have become positive,which promoted the positive effect of CSIC's financial leverage.Second,the debt-to-equity swap did not have a significant impact on the allocation of control rights of CSIC,and the control power was still in the hands of major shareholders,which further did not have a positive impact on the company's governance structure and the acceleration of state-owned enterprise reform.