The Research Of Debt To Equity Swap On Patterns And Effects Of CSIC

After the financial crisis,the leverage of domestic enterprises has gradually increased,especially in state-owned enterprises.In the past two years,the debt ratio of state-owned enterprises in some manufacturing sectors has remained above 70%.Under the environment of declining demand,the profitability of enterprises has declined,and the side effects of debt expansion in the past have appeared.After 2016,debt-for-equity swaps were proposed.The de-leverage of such state-owned enterprises was not effective in the previous round of debtto-equity swaps.It is considered to be the assistance to state-owned enterprises in the special economic situation in the late 1990 s.However,at present,China has become the world's second largest economy.The state-owned enterprises' mixed reform plan has successively proposed and gradually guided some state-owned enterprises to break the rigid redemption.This shows that the government's attitude toward state-owned enterprises has changed a lot compared with the previous social and economic environment.There is a significant difference in the round of debt-to-equity swaps.What is the difference between this debt-to-equity swap and the last time? Have you adapted to the current economic form and solved the contradictions in the development of state-owned enterprises?Previous scholars have less research on the debt-to-equity swap model and effect.The objective reason is that the debt-to-equity swap scheme is poorly disclosed.The research perspective is limited to the change of the financial ratio index.When there are large differences in financial and operational aspects between enterprises,Financial indicators usually cannot accurately reflect the differences between enterprises.In addition,the impact of debt-to-equity swaps on enterprises will be reflected first in working capital.The financial ratio indicator analysis method in the same enterprise directly draws conclusions that are too simple and the conclusions are too absolute.This paper selects the first Chinese mid-level military enterprise to implement debt-to-equity swaps as a case study.The China Heavy Industry Debt-to-equity swap plan is complete and transparent,and the company's business report disclosure is better than other companies.Research has advantages over other companies,and it is convenient to study the effect of debtto-equity swap from the perspective of corporate financial accounting.The article introduces the short-term and long-term effects of China's heavy industry debt-toequity swap and debt-to-equity swaps in order to reveal the difference between the design and the effect of this debt-to-equity swap.For the first time,using the static and dynamic working capital measurement model and improving the Du Pont analysis core formula to analyze the debt-to-equity swap,it is revealed that the significance of debt-to-equity swap is not to reduce the asset-liability ratio of the enterprise,and to reduce the asset-liability ratio by introducing investors.In the short term,reducing the working capital gap will enable enterprises to go out of the vicious circle of relying on debt to compensate for the interest gap.In the long run,it can change China's heavy industry financing decisions and help enterprises get out of the high debt dilemma.