Research On Implementation Effect Of Market-oriented Debt-to-equity Swap In China Gold Group

In recent years,China is in an important stage of economic structure transformation and optimization.While enterprises enjoy good benefits from high investment,it is inevitable that the leverage ratio keeps rising.Market-Oriented Debt-to-Equity swap has become an important way for enterprises to reduce leverage.Although this round of debt-to-equity swap signing scale is large,it is difficult to implement the project.Meanwhile,most enterprises are faced with many problems,such as difficulties in subsequent equity withdrawal,and many risks and challenges in the implementation process.Due to historical reasons,the asset and liability level of China Gold Group is too high.In order to improve the corporate debt level and improve the corporate governance structure,China Gold Group began to implement Market-Oriented Debt-to-Equity swap in 2018.However,the analysis on the implementation effect found that there were many problems in Market-Oriented Debt-to-Equity swap of China Gold Group.It is hoped that the research of this paper can provide some directions for China Gold Group to solve the current problems,so as to achieve the long-term effect of implementing Market-Oriented Debt-to-Equity swap and promote the sustainable development of enterprises.This paper takes China Gold Group as the research object,based on the implementation motivation and implementation process,adopts the combination of quantitative and qualitative methods,and makes a multidimensional analysis of the implementation effect of Market-Oriented Debt-to-Equity swap in China Gold Group.It mainly evaluates the reaction of the capital market through the event study method,evaluates the enterprise performance through the financial index,evaluates the enterprise value through the Tobin’s Q value,analyzes the influence of the company’s equity and creditor’s rights structure,and evaluates the financial risk.Through the analysis and evaluation of the implementation effect,it is found that the implementation of Market-Oriented Debt-to-Equity swap has successfully reduced the financial leverage of enterprises,and the establishment of strategic cooperative relations with institutional investors can promote the development of enterprises.However,there are also some problems in this debt-to-equity swap,such as the aggravation of financial risks caused by high debt,the main use of raised funds for replenishment and debt repayment,and the rights and interests of institutional investors may be infringed and the equity has not been withdrawn.In view of the existing problems,relevant optimization suggestions are put forward: continue to build a financial risk prevention and control system,enhance the competitiveness of enterprises to improve the efficiency of capital use,build a diversified equity exit mechanism,and constantly improve the ability of corporate governance.Finally,it puts forward the safeguard measures at the level of enterprises,governments and institutional investors,hoping to provide some ideas to solve the problems existing in the debt-equity swap of China Gold Group,so as to play a more long-term debt-equity swap effect and promote the sustainable development of enterprises.