A Study On The Effectiveness Of Bankruptcy Reorganization Of Bestway Based On Cooperative Game Theory

In recent years,many enterprises have fallen into crisis as a result of the economic downturn and the tightening of financing policies.However,if bankruptcy liquidation is implemented directly for these enterprises,it will not only harm the interests of stakeholders,but also cause a loss of social resources.As a result,more and more distressed companies are looking to restructuring.How can the effectiveness of restructuring be evaluated? It is increasingly worth exploring.However,much of the existing research has analysed the effects of restructuring in terms of market response and long-term performance,focusing on the efficiency of restructuring.This is similar to the evaluation of corporate performance in general,and does not take into account the cooperative game between stakeholders in the restructuring process,and therefore does not provide a more comprehensive analysis of the effects of restructuring.Based on the cooperative game theory and stakeholder theory,this paper constructs a bankruptcy restructuring evaluation index system based on two value dimensions,namely efficiency and fairness,to analyse the effectiveness of restructuring in BESTWAY,the first private listed enterprise in China’s shipbuilding technology category.The study found that:(1)BESTWAY developed a reasonable restructuring plan within the right time and at a lower-than-average cost,and achieved a high recovery rate,making the implementation of the restructuring efficient;(2)after the implementation of the restructuring plan,BESTWAY improved its financial quality,operational quality and governance effectiveness,reflecting the gradual recovery of its ability to continue as a going concern,making the restructuring post-efficient;(3)after the restructuring of Tianhai(3)after the restructuring of BESTWAY,the total price of the shares held by the former shareholders after the transfer was higher than the total price of their shares before the transfer;(4)employees avoided unemployment,the number of employees of the company increased year on year and the remuneration of the management was enhanced;(5)creditors’ settlement rate was improved;and(6)the restructuring investors also obtained high returns for low investment.In conclusion,the reorganisation of BESTWAY achieved high efficiency while safeguarding the interests of all stakeholders,without sacrificing the interests of any one party,and achieved relative fairness.This paper presents a more comprehensive analysis of the effectiveness of BESTWAY’s reorganisation by constructing a reorganisation evaluation system that focuses on the cooperative game between stakeholders.From a theoretical perspective,it has enriched the field of bankruptcy restructuring effectiveness evaluation and case studies of bankruptcy restructuring to a certain extent.From a practical perspective:(1)the evaluation index system constructed in this paper can provide a reference for stakeholders of other restructuring enterprises to analyse the effects of restructuring and their own profitability,and improve stakeholders’ awareness and acceptance of restructuring;(2)the restructuring of BESTWAY has achieved good results,and the study and insights from it can be useful for other enterprises that are about to enter into restructuring procedures.