Study On Convertible Bond Financing Of The Listed Company In China

Aiming at the obvious defect of the financing behavior of our listed company, which appears a lower financing efficiency caused by the excessive dependence on the equity financing, this dissertation discussed the advantages and the necessity of the convertible bond financing. Convertible bond has predominance at the financing cost; meanwhile, it proves to be valid in solving the interests' conflict among creditor, manager and stockholder because of its mechanism design. Both in theoretical analysis and demonstration, the advantage above is discussed in the dissertation. A deep research has also been done on the item design, issuing, and the relative degree between the issuing and the price of the stock, which turns out that, the item design and the issuing time have important effects during the course of the convertible bond financing. And the declaring-efficacy turn out to be a reflection of the subjective evaluation of the investor.