Research On The Financial Performance And Reasons Of Listed Company After Issuing Convertible Bonds

Because convertible bonds is a kind of hybrids between debt and common equity. In the past one hundred years, convertible bonds has reached a mature development in foreign countries. It already became one of the most important tool in the international capital markets. However, convertible bonds in China is still at an early stage of development. With the development of market economy. The new financing tool is accepted gradually by the market. More and more company use this kind of tool to refinance. Especially in 2010, the total refinancing amount by convertible bonds reached 75.58 billion. It is more than the amount which is financed in the past ten years.The domestic and foreign scholars pay more attention to the performance of the listed company after their refinance. The financial theory has agreed that the convertible bonds is beneficial to the improvement of corporate performance. Is it the same under the Chinese characteristic system. How is the performance after convertible bonds financing in China? And what the reason is? These issues are the key points of the study.In the article, I select 59 samples of the listed company which distributed convertible bonds from 2002-2009, using empirical method to research. First, choose six indexes which can primarily represent the performance of the corporate, using non-parametric test method to research the change of performance after the financing. As well as the comparison of the industry group. Second, analysis on the reasons for the decline of the performance on the basic empirical method. Third, summarize the results of the theoretical and empirical analysis, propose related policy suggestions and the future research directions.