Research On The Motivation And Effect Of Market-oriented Debt-to-equity Swap In Yangquan Coal Industr

As our country’s economic development enters a new normal,the drawbacks of the real enterprises relying on debt development are more and more obvious.As one of our main energy supplies,state-owned coal enterprises,due to the high ratio of assets and liabilities,overproduction and other general problems,lead them to carry high debt,production and operation difficulties.In 2016,The State Council issued the Guiding Opinions on the Marketization of debt-to-equity swaps in Banks,which put more emphasis on the marketization of debt-to-equity swaps.The government guides enterprises and financial institutions to actively participate,and the specific implementation process is decided by the participants themselves.Despite the rapid development of market-oriented debt-to-equity swap in recent years,there are also some problems in the implementation process,such as clear shares and real bonds,pricing and valuation differences,and very difficult to raise funds,which will hinder the smooth implementation of market-oriented debt-to-equity swap,making the effect of market-oriented debt-to-equity swap fail to reach the original motive.Yangquan Coal industry,as the leading enterprise of Chinese coal industry,has the common problems of high leverage ratio of state-owned enterprises and coal enterprises,heavy debt burden and excess production capacity.In order to solve the dilemma faced by enterprises,Yangquan Coal Industry successfully implemented market-oriented debt-to-equity swap in September 2020,becoming the first debt-to-equity swap project implemented by a listed company by issuing preferred shares in the domestic coal industry.Therefore,taking Yangquan coal industry as the research object,this paper firstly combs domestic and foreign literature on the motivation and effect of market-oriented debt-to-equity swap.Secondly,from the theoretical point of view,the paper studies the market-based debt-to-equity swap and expounds its related concepts and theoretical basis.Then through the introduction of the basic situation of Yangquan coal industry and the implementation process of market-oriented debt-equity swap,explore the motive of market-oriented debt-equity swap;Secondly,it studies the effect of market-based debt-equity swap from the perspective of implementation effect and influence path respectively.Finally,research conclusions and suggestions are put forward.The results show that the motivation of implementing market-oriented debt-equity swap in Yangquan coal industry lies in enhancing market competitiveness,reducing debt burden and strengthening enterprise management.Based on the above motives,the effect of debt-equity swap in Yangquan coal industry is remarkable in three aspects: short-term market effect,leverage effect and corporate governance effect.Information transfer,deleveraging and investment introduction mechanism are the internal ways to realize the effect of market-oriented debt-equity swap.The research of this paper is helpful to enrich the relevant literature of market-oriented debt-to-equity swap,explore the implementation plan of market-oriented debt-to-equity swap that is in line with the reality.By studying the motivation and effect of market-oriented debt-to-equity swap in Yangquan coal industry,it can provide certain references and references for the enterprises in urgent need of market-oriented debt-to-equity swap,and help the smooth implementation of the current supply-side reform and deleveraging policy.To provide impetus for sustainable economic development.