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Listed Companies Issued Convertible Bonds, Performance Trends And Causes

Posted on:2006-10-25Degree:DoctorType:Dissertation
Country:ChinaCandidate:Y P WangFull Text:PDF
GTID:1116360152485677Subject:Accounting
Abstract/Summary:PDF Full Text Request
The corporate performance after refinancing has been the focus ofthe academic and the practitioners in our country for a long time.Recently, the convertible bond, a new type of financing tools, hasappeared in the capital market in our country, and its financing scale hasbeen increasing year by year. The financial theory has agreed that theconvertible bond is beneficial to the improvement of corporateperformance. However, under the Chinese characteristic systembackground, is this theory still available? This question has to beanswered by the policy makers. In order to prove the instructingsignificance of the above theory, this paper has studied the followingaspects thoroughly: what is the effecting mechanism of the convertiblebonds to the corporate performance? What is the system background ofthe listed companies in our country? Under this system background, canconvertible bonds effect on the improvement of corporate performanceadequately? What is the performance change trend after convertiblebonds financing? Why? The answers to these questions have been themain content of this paper. The research conclusions of this paper haveimportant theoretic and practical significance on the regulation ofconvertible bonds financing behavior of our country, corporateperformance improvement, derivative financial tools innovation anddevelopment of the capital market in our country. It is believed that thegovernment supervision departments will find these conclusionsespecially useful. This paper is constructed according to the empirical study pattern.There are three sections of this paper: section 1 (chapter1-2) is literaturereview and system background analysis; section 2 (chapter 3-5) isempirical study; section 3 (chapter 6) is research conclusion. The arrangement of this paper is: first, it analyzes on the mechanismof the convertible bonds to the corporate performance improvementthrough literature review, and studies the validity of this theory.Furthermore, this paper studies the system background of the listedcompanies, and analyzes on the function of convertible bonds to thecorporate performance improvement, and make hypothesis on the basis oftheoretic analysis and system background analysis. Second, this paperreviews on the corporate performance change tendency after convertiblebonds financing in listed companies, and tests the hypothesis. Third, thispaper provides further explanations of the empirical results from twoaspects: one is to explain the reason of the performance decline afterrefinancing; the other is to explain the motivation of issuing convertiblebonds. Fourth, this paper gives a full conclusion of the above analysis. Following the above arrangement, this paper has 6 chapters: Chapter 1, the theoretic analysis of the convertible bondsfinancing's influence on corporate performance. This chapter hasemphasizes on the mechanism of the convertible bonds financing to theimprovement of corporate performance. The literature review shows: as afinancial contract, convertible bonds will decrease the corporatetransaction cost by adding an option to switch in the bonds; as a derivatefinancial tool, convertible bonds will help the corporate performanceimprovement by reducing the corporate risk. The decrease of corporatetransaction cost and risk will cause the increase of corporate ROI anddecrease of capital cost, and then to improve the corporate performance.During this course, the clausal design of convertible bonds is the key ofits function. This paper believes that the applicability of the abovetheories depends on the situation of three aspects, the motivation ofsystem innovation, the application range of the theories and the practicalimpact, and they should not be simply copied. Chapter 2, the system background of the convertible bondsfinancing behavior in listed companies. This chapter studies the systembackground of the listed companies. Through the analysis, it is clear thatthe separate stock rights are the main infection factor of the performanceof our listed companies. Under this system background, the contro...
Keywords/Search Tags:Convertible bonds financing, Corporate performance, Capital cost, Empirical study
PDF Full Text Request
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