Research On Applicability Of "Tow Step" Market-Oriented Debt-to-Equity Model From The Perspective Of Value Logic

On October 10,2016,the State Council promulgated the "State Council on actively yet prudently to reduce enterprise's opinions on leverage and accessories on the market bank debt to equity guidance",put forward by using convertible means to effectively reduce the enterprise market debt leverage,advance the supply side structural reform,continue to carry out the reduction activities.For now,although the market successively with CSIGC,CREC and other large enterprises through the“two-step” model successful implemented the debts into shares,but the overall landing rate is relatively low.Both parties are not share to adopt what kind of pattern implementation to balance the interests of all parties and risk.Therefore we need to do system analysis of typical cases,and provide the reference path to those companys who are willing to implement debts into shares.On the basis of the existing research literature on debt-equity swap,this paper firstly introduces the definition,classification and operation mode of debt-equity swap at the theoretical level.Secondly,the case study method is used to select CREC as the analysis object,briefly introduce the participants of the market debt-equity swap,sort out the practical operation process of the swap,and analyze the implementation motivation of both participants.After the case analysis,the logic of value,risk,as well as the applicability of three aspects of its use ‘two-step” model research,the value of logical analysis which is from the value discovery,value creation and value added to analyze the model of the implementation of the process;risk analysis refers to the analysis of potential risks faced by both parties in the whole implementation process;applicability analysis is to summarize the advantages and disadvantages of the "two-step" model and the applicable enterprises.Finally,put forward the relevant conclusions and relevant suggestions.Provideoperation path and implementation steps to companys who want to achieve lower leverage more improve the operating performance of enterprises and institutional investors who want to obtain value-added through the marketization of debt-to-equity.