Research On The Motivation And Effect Of Bankruptcy Reorganization Of Listed Companies

Since the outbreak of the global financial crisis in 2008,China’s economic development has been seriously impacted,and the mismatch between supply and demand in some industries has become increasingly severe.In particular,there is serious overcapacity in iron and steel,chemical and other industries.A large number of enterprises are facing operating losses,capital turnover difficulties and insolvency,which makes enterprises fall into financial difficulties.However,local governments will give more government subsidies and preferential policies to enterprises in financial difficulties,especially large state-owned listed companies,which makes a large number of enterprises fall into the vicious circle of "borrowing the new and returning the old",and finally form a large number of "zombie enterprises",but these enterprises are not conducive to the optimal allocation of resources and the development of a virtuous circle of economy.Therefore,in 2015,it proposed the supply side structural reform with the key task of "three removal,one reduction and one compensation".How to quickly resolve excess capacity has become the primary task of the reform.It also proposed to adhere to the principle of "more mergers and acquisitions and less bankruptcy liquidation".Bankruptcy reorganization has become a strategic choice for many enterprises in financial difficulties to get out of trouble.According to the wind database,by the end of 2021,a total of 116 listed enterprises in China had entered the bankruptcy reorganization process,and more and more troubled enterprises chose bankruptcy reorganization for rescue.However,in the long run,the reorganization effect of some enterprises is poor,and even face the risk of delisting again.Therefore,how to fundamentally get rid of the plight of enterprises and improve the success rate of bankruptcy reorganization is an urgent problem to be solved at present.By consulting the relevant research on bankruptcy reorganization at home and abroad,it is found that scholars have conducted rich research from the perspectives of bankruptcy reorganization legal system,reorganization mode,reorganization value and reorganization effect,but the research on the motivation of bankruptcy reorganization is not deep and comprehensive,which is not conducive to the judgment and selection of ways to help troubled enterprises,and the research perspective on the effect of bankruptcy reorganization is not rich enough.Based on this research,this paper selects Chongqing Iron & Steel as the case study object,deeply analyzes the motivation of Chongqing Iron & Steel’s choice of bankruptcy reorganization,then combines the reorganization scheme,makes a quantitative analysis on the short-term and long-term effects after reorganization by using the event research method and financial index analysis method,then makes a qualitative analysis on it from the perspective of various stakeholders,and finally draws a research conclusion,Broaden the relevant research of enterprise bankruptcy reorganization.The research ideas of this paper: firstly,it combs the relevant research results at home and abroad on the motivation,mode and effect of bankruptcy reorganization through literature;By collecting and sorting out the data of Listed Companies in bankruptcy reorganization,this paper analyzes the current situation of bankruptcy reorganization,and then leads to the case company.Secondly,it introduces the basic situation of Chongqing Iron & Steel,combs the bankruptcy reorganization process and reorganization plan,first analyzes the specific reasons for its poor management from Chongqing Iron & Steel itself,then introduces the process of Chongqing Iron & Steel looking for various ways to rescue itself from the failure of Chongqing Iron &Steel,and finally analyzes the reorganization value of Chongqing Iron & Steel itself and the consideration based on the national and social levels from the feasibility of Chongqing Iron &Steel choosing bankruptcy reorganization,Finally choose bankruptcy reorganization for rescue.Finally,analyze the effect of bankruptcy reorganization,analyze the market effect of reorganization by using the event research method,analyze the financial performance of reorganization by using financial indicators,and analyze the social effect of reorganization by using non-financial indicators.Chongqing Iron & Steel is the first "A + H" listed company in China’s iron and steel industry to choose bankruptcy reorganization.It is one of the largest reorganization cases involving assets and debts in China.It is considered to be "particularly significant and without precedent".It has fundamentally got rid of the difficulties through the implementation of bankruptcy reorganization.Its successful experience is conducive to providing reference for enterprises in similar difficulties and choosing bankruptcy,and resolving overcapacity,promoting industrial upgrading It is of great practical significance to realize the transformation of economic structure.