Research on Equity Refinancing, Debt Restructuring and Firm Pricing Based on Financial and Economic Distress

DOI

10.2991/aebmr.k.191217.044How to use a DOI?

Keywords

Financial distress, Economic distress, Equity refinancing, Debt restructuring

Abstract

This paper distinguishes financial and economic distress, and gives a comprehensive solution to firm’s distress by means of integrative equity refinancing and debt restructuring. It constructs a model to price the firm under different financial conditions,especially when the liquidation value is less than 0. In the model, the relationships among financial distress, economic distress, equity refinancing, debt restructuring and renegotiation are clarified. The optimal restructuring boundary is also determined endogenously by maximizing the interests of both shareholders and creditors with the viewpoint of harmony.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Tan Chunping
AU  - Qin Xuezhi
AU  - Wang Lin
PY  - 2019
DA  - 2019/12/20
TI  - Research on Equity Refinancing, Debt Restructuring and Firm Pricing Based on Financial and Economic Distress
BT  - Proceedings of the 2019 International Conference on Economic Management and Cultural Industry (ICEMCI 2019)
PB  - Atlantis Press
SP  - 243
EP  - 249
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.191217.044
DO  - 10.2991/aebmr.k.191217.044
ID  - Chunping2019
ER  -