Motivation And Performance Analysis Of Market-oriented Debt-to-equity Swap For Coal Enterprises

In October 2016,the State Council issued guidance on market-oriented debt-to-equity swaps,which opened the prelude to a new round of market-oriented debt-to-equity swaps.Unlike the debt-to-equity swaps at the end of the 20 th century,the previous round of debt-to-equity swaps was mainly aimed at the problem of non-performing assets of state-owned wholly-owned banks,and this round of debt-to-equity swaps emphasized marketization,mainly to reduce the asset-liability ratio of physical enterprises.At the same time,compared with the last debt-to-equity swap,the current capital market and economic situation have undergone tremendous changes,so the previous round of government-led debt-to-equity swaps is not applicable to the current economic situation.Due to the very urgent demand for capacity reduction and deleveraging in the coal industry,especially after China 's implementation of the capacity elimination policy for the industry,coal companies urgently need to adjust their operating objectives and methods to solve the problems of overcapacity and excessive debt According to the case of Shandong Energy Group's debt-to-equity swap,combined with domestic and foreign debt-to-equity swap theories,it is of great significance to solve the heavy financial burden on coal enterprises and broaden the construction of China's debt-to-equity theoretical system,and promote coal companies to embark on a sustainable development path.On the premise of comprehensively and systematically summarizing the characteristics,motives,and effects of debt-to-equity swaps at home and abroad,based on the principal-agent theory,budget soft constraint theory,MM theory,and trade-off theory,the author theoretically analyzes the implementation of debt conversion in the coal industry The necessity of shares and the results achieved.This article is divided into six parts.The first part is an introduction,which mainly introduces the research background and significance,research content and research methods of this article,and possible contributions and deficiencies of this article.The second part is a literature review,mainly elaborating the domestic and foreign research on the characteristics,motivations and performance of debt-to-equity swaps.The third part is the theoretical basis,which explains and defines the concept and characteristics of debt-to-equity swaps.The fourth part is the analysis of the coal industry.It analyzes the development of the industry in recent years under a new economic environment from a macro perspective.And an overall analysis of the industry's second round of debt-to-equity swap companies was conducted,summarizing the causes and performance of their debt-to-equity swaps.The fifth part is the case analysis,which selects the case of debt-to-equity swaps of Shandong energy enterprises.Based on the financial and operating conditions before the debt-to-equity swaps were implemented,the motivations for the debt-to-equity swaps were analyzed,and the company 's debt-to-equity swaps were elaborated.The plan and process finally made a comparative analysis of the financial indicators before and after the debt-to-equity swap,and concluded that Shandong energy companies have reduced the asset-liability ratio through debt-to-equity swaps,and the operating conditions are gradually improving.The sixth part is the research conclusions and policy recommendations,draws the conclusions of this paper,and chooses from debt-to-equity swap companies cautiously,flexibly uses different models and strengthens post-investment management,improves corporate governance mechanisms and operating strategies,diversifies and improves the funds raised And improve the corresponding laws and regulations and other aspects to make policy recommendations.Based on the new round of market-oriented debt-to-equity swaps in 2016,this article has carried out a large number of theoretical analyses on the basis of fully collecting,sorting out and analyzing the existing domestic and foreign relevant literatures,and obtained the following conclusions: Market-based debt-to-equity swaps with diverse motives and fund-based models can significantly improve corporate debt conditions,and market-based debt-to-equity swaps can effectively help banks mitigate financial risks.The case selected in this article presents a certain timeliness and representativeness.The market-oriented debt-to-equity swap has been implemented for a relatively short period of time.Today's research on market-oriented debt-to-equity swaps lacks a complete case analysis.This article takes the current status of coal companies 'debts as the starting point,analyzes the significance of debt-to-equity swaps,and selects Shandong Energy,a typical state-owned coal company,and combines Shandong Energy 's market-based debt-to-equity swaps to summarize operations.Refine problems and formulate countermeasures to provide inspiration for coal companies to further promote the implementation of market-based debt-to-equity swaps.However,the implementation of debt-to-equity swaps is not long.Whether the enterprises have truly resolved the risks or whether they will transfer or postpone the risks will require a longer period of observation and research.And due to my lack of research time and insufficient capacity,although Shandong Energy is the first coal enterprise to implement a debt-to-equity swap project,there is a certain representativeness,but it cannot reflect all the debt-to-equity swaps in the country,so there are still many What needs to be improved.