Positive Study On Chinese Listed Companies' Finance By Convertible Corporate Bond

Convertible corporate bond has three special merits such as characteristics of debt, equity and options. All these offer convertible corporate bond the ability to sell common shares at a premium and to finance as a low cost debt. Consequently, It plays an important pole in the financial market in America, Europe and Southeast Asia.Since convertible corporate came to China, it grows slowly. It develops quickly after 2001.Besides corporate bond and stock, it is main tool for company to finance in domestic capital market. Though it has developed few years in China, it is still young when compared with western countries. At the objective level, for the lack of theory and practice research, the back of laws and economy, at the subjective level, the incorrect tendency to finance and the deeper agency problem, all these make it become riskful in China.Relevant theories figure out that a company, which wants to finance by convertible corporate bond, must possess some qualifications. Various companies will pay out and achieve differently accounting for their special qualifications and operations. China listed company, as an important part of China capital market, its development is essential to keep the capital market healthy and stimulate economy and raise our country's world position. Chinese listed company is the only one permitted to use this bond, so it is worthwhile studying its cost and incoming, and it even worthwhile for china to effectively use this bond.The article is based on the hypothesis that the operator is rational and chase for profit. Besides positive research in listed company, it attaches much importance to divert some theories, which should obey by the company to finance in a low cost. What's more, it also makes full use of the case research to study whether the listed companies have turned out to be a good result. Under such analyses it figures out the construction of bond item is another factor for success. At the end of the thesis, it illustrates the reasons the listed companies ready to use convertible corporate bond to finance and give some measures to make Chinese convertible corporate bond run on the right track.The clue of the thesis is theory then positive research and case research. in whole, the article gets a good result.