The Analysis Of Convertible Bond's Management Mechanism In Venture Investment Enterprise

The convertible bond as the newly arisen financing tool on our country capital market, outside the professional make normal margin function, can also make use of its convertible characteristic between the corporate bond and stock, for resolving the problem of agency, specially the conflict between the shareholder, the management and the creditor(holders of bonds). This text is to take the venture investment enterprise (in the text , the venture investment enterprise has already carried out the separation of the ownership and the management power, the agency problem have already appear, but still have the high growth, high risk, the high liabilities characteristic) as an example, from two sides analyzes the convertible bond's influence to the management mechanism of company. (1) The convertible bond's resolving to the agency problem between the shareholder and the management layer. To this, we can adopt the ways liking to give the management layer stock option to encourage so, give the management layer certainly the quota can convert the bond, making use of the conversion premium price income between the convert price and the stock market price when it exercises to convert the power to be to overcome the agency problem, to encourage the management and shareholder. (2)For the obligation of the conflict between creditor(bond holders) and shareholder , after adopting and canning convert the bond, we can make use of the convert property to solve the shareholder's violating the creditor benefits. In addition, this text further inquiries into the convertible bond's mechanism application in the general company. Because the convertible bond's mechanism demands the bond's price attaining to satisfy the conversion condition that the bond converts into the stock, but in general company can hardly reach this. In the venture investment enterprise, because it has the very high expectation income, the high income can be very easily contented the conversion condition. Therefore, we can convert the bond under the prior condition of the general business enterprise, can't carry out smoothly for the conflict of the creditor and shareholder, but he agency problem between the shareholder and creditor, can encourage the function that the company's management to make it be resolved through its option right. Finally, this text accords to the actual circumstance in our country's listed company, putting forward the steps and the implement projects that the convertible bond participates the company's incentive system construction. The thesis is divided into four parts totally: The first part gives the simple introduction of the convertible bond and the agency problem, the concept and characteristics of the venture investment enterprise (this text limits in middle venture investment enterprise) .The problem of agency problem is an exterior core of the company, the concrete performance is the conflict of the shareholder, the creditor(bond holders) and the management layer. This text takes the agency problem theory as study frame, analyzing two the types agency problem between the shareholder, the manage layer and the creditor in the middle venture investment enterprise. The second part mainly introduces before using the convertible bond for the middle venture investment enterprise the ways to resolve agency problem between the shareholder, the management layer and the creditor. For the conflict between the shareholder and the management layer, we adopt to give the management layer stock option right, make them towards the target making them jump together; for conflict between creditor and shareholder, because the creditor can't participate themanagement of the company, have to directly add the item of the restrict the shareholder's behavior on the obligation contract, attaining to keep self interest from the damage. The third part is a key part. In this part, the article first expatiates the convertible bond's purpose to the agency problem, connects down to the convertible bond's concrete function process in the middle venture inve...