Theoretical Analysis And Empirical Research On Financing Effect Of Convertible Bonds Market In Listed Companies Of China

Convertible bonds financing is a significant way of refinancing for businesses. Comparing with issuing stocks and bonds, convertible bonds have cost effectiveness, and at the same time, it also faces the problem of dilution effect and debt effect. These problems make it more meaningful to research the project that makes convertible bonds to be a financing instrument.On the basis of understanding the fundamental concepts and feathers of convertible bonds, firstly, this thesis makes a theoretical analysis from before-hand angle to the motive of listed companies'issuing convertible bonds, for the sake of having a initial comprehension of fast development of China'convertible bonds market; secondly, from the angle of after-hand, the thesis not only makes a theoretical analysis to dilution effect, debt effect and total effect of listed companies'issuing convertible bonds financing, but also has a qualitative analysis of its financial effect to make a better comprehension of relative advantages for financing with convertible bonds; thirdly, through simulating stocks financing and bonds financing, the paper takes quantitative computing and empirical research on the single convertible bonds financing case of China Minsheng Bank Corporation(CMBC); finally, with the same computing method of CMBC, this paper carries out an empirical study on the total effect of listed companies'convertible bonds financing in China, by using twenties samples of convertible bonds.By the end of this empirical research, the thesis finds that most of the listed companies which issue convertible bonds in China have positive total effect, compared to stocks financing and bonds financing, so they are successful to chose convertible bonds financing; In addition, to the small number of listed companies'convertible bonds financing, its debt effect and total effect for relative advantage does not manifest, owing to the error conversion measure and item design.In accordance with the conclusion mentioned above, this paper suggests that we should develop convertible bonds market with great exertion, and to fully manifest the relative advantage of convertible bonds financing, we should norm conversion measure and design reasonable basic item.