Research On The Decision Model Of Convertible Bond Financial With Bankruptcy Risk

In this dissertation, the conversion strategy, the sale strategy and the call strategy are studied. Through analyzing the effect of the actualizing condition and the time of three strategies on the convertible bond financing, the convertible bond financial decision-making model with bankruptcy risk is set up. The main work is as follows.The return on total capital determines the capital structure of corporate. The return on total capital is characterized as random variable in past studies. In fact, the profit of a corporate in future is always characterized by vague linguistic descriptions such as " high profit ", " low profit ". The return on total capital is not only stochastic but also fuzzy. Here the financial decision-making model based on bankruptcy risk is established in stochastic environment and random fuzzy environment, respectively.The conversion condition and conversion amount are studied in which the investor's risk preference and the asymmetry information are taken into account. The investor with risk preference requires a conversion premium and the conversion premiums of total investors are characterized as fuzzy variable. According to the conversion premium the investors can be classed into three sorts. In the conversion strategy, the conversion condition and the conversion amount of the three sorts investors are analyzed.The call aim of corporate is to force the investor to convert. Under taking the effect of conversion condition and the notice period on the call strategy, the stock price restriction and the call cost restriction are supplied. Finally, the call expected payout rule is given according to the aim of the corporate.The investors who decide to sale need take into account not only the stock price current but also the stock price past. Given the degree and the period of stock price under the conversion price certain weight factor, the sale condition of investors can be found.Under analyzing the condition and the time of three strategies actualizing, the amount of convertible bond remained can be got. According to the amount of convertible bond remained, the convertible bond financing decision-making model based on bankruptcy can be established. Due to two extreme results of the financing decision, the financing scope of convertible bond can be gained. .