Research On The Performance Of Debt To Equity Swap Of CSIC

With the continuous development of the national economy,the model of relying on financial leverage to promote economic development has exposed a large number of problems,which have had a negative impact on the development of enterprises.Affected by high leverage,the financial and debt problems faced by state-owned enterprises and central enterprises have gradually become prominent,and all sectors of the society have kept close attention to this problem.How to reduce corporate leverage has become the research focus of domestic and foreign scholars.Therefore,market-based debt-to-equity swaps have been well developed.Many scholars have conducted in-depth research on market-based debt-to-equity swaps to help companies control their leverage ratios at a low level.State-owned enterprises such as China Heavy Industry and China Railway are facing the problem of excessive financial leverage in their development.Enterprises use market-based debt-to-equity swaps to control their own debt within a reasonable range to achieve the goal of reducing leverage.This article finally selects China Re-work as a case study.Although domestic and foreign scholars have done some research on debt to equity,only a few scholars have studied the performance of debt to share,which leads to the lack of a perfect research framework.This is mainly because most enterprises do not disclose the details of debt to equity,which leads to the scholars can only analyze the changes of financial indicators of enterprises before and after debt to equity conversion.On this basis,the paper analyzes the changes of financial indicators of enterprises before and after debt to equity conversion Make comprehensive judgment on the impact of.If only the financial indicators are analyzed,it is difficult to fully reflect the effect of debt to equity.This foreign debt conversion will have a direct impact on the non-financial performance of enterprises,only the analysis of financial ratio indicators will have a certain impact on the credibility of the research results.This paper selects the first military industry central enterprise CSIC,which implements market-oriented debt to equity swap in the form of "debt to equity swap,cash capital increase and debt repayment" + "asset purchase" as the analysis case,and uses case study method and literature review method in the research.This paper first explains the significance of the research,on the basis of introducing the research background of this paper,expounds the research ideas,research methods,and also points out the innovation and shortcomings of this paper.Secondly,it summarizes the research theories of scholars at home and abroad,and introduces the research status of debt to equity swap and its significance in detail.This part mainly introduces the debt to equity swap scheme adopted by CSIC,and details the participants of the debt to equity swap.Among them,CSIC is the sponsor of the debt to equity swap project,and its wholly-owned subsidiaries,CSSC and DSIC,are the direct participants of the project,In addition,eight institutional investors participated in the project,and the paper also introduces in detail the reasons and modes of debt to equity swap of CSIC.Through in-depth study on the case of debt to equity swap of CSIC,we can understand the real performance of debt to equity swap project.This paper mainly studies from two aspects of financial performance and non-financial performance.Combined with the above research conclusions,we can draw a conclusion that there are many places for China heavy industry’s "two-step" market-oriented debt to equity swap,but there are also some places that can be improved and problems worthy of our consideration.