A Research On The Motives And Causes For Listed Companies Floating Convertible Bonds And Issues Related

Convertible bonds is one kind of financial implement being situated between bonds and stocks and one financing plus investment tool with a exceptional charm, which has the specific properties of options, shareholders'rights and creditors'rights and possesses even more advantages compared to the simple financing vehicles and derivation instruments. It is more than 10 years after convertible bonds have been brought in our nation since the early of 1990s. At present, it has become one important form of re-finance for listed companies. In the past few years, there were more and more research on studying convertible bonds in the homeland which mainly focused on the economic research about the theory of convertible bonds, and the study aspect of convertible bonds pricing theory as well, nevertheless there were very few research beard on the motives and causes of companies'convertible bonds and issues related. This thesis starts with the basic theory of analyzing convertible bonds, then analyzes the motives and causes of companies floating convertible bonds through introducing external financial cost further, such as agent cost, financial crisis cost and information unsymmetrical cost. The purpose of this thesis is to help listed companies to recognize convertible bonds rationally as one financing implement, and offer enterprises some useful reference to choose and use it properly.Based on the analysis of present theories and demonstration conclusions, this thesis hold the view that the major motives and causes for companies floating convertible bonds lie in reducing various external financial costs when they carry on external financing. To clarity the real motives and causes for our country's listed companies floating convertible bonds, this thesis classifies all of our country's listed companies floated in Shanghai and Shenzhen since 2001 as equity-like and debt-like convertible bonds,using the experience that Lewis, Rogalski and Sewand(1999),applied standard Black-Scholes option formula to the calculation of conversion probability,moreover,by making use of empirical models such as simple variable analysis and Logistic Model, this thesis tests the relationship between the motives plus causes for our nation's companies floating convertible bonds and external financial cost, probes the problems existed in the floatation of our country's convertible bonds and provides related suggestions.This thesis sets off a study from six chapters including the introduction:Chapter one: on summarizing the domestic and oversees research achievements,it advances the research significance and research goal,the research content and research method,as well as the innovations plus inadequacies in this article. Meanwhile,it offers the following study some essential rhetorical foreshadowing and analysis prerequisite.Chapter two: it introduces the essential attributions and basic elements of convertible bonds,besides,analyzes the debt-like of convertible bonds and the influent factors of equtity-like. These introductions and analysis have quite important effects on studying our country's listed companies floating convertible bonds.Chapter three: according to the present document analysis,it introduces the theory of convertible bonds'financing and capital construction,and the dilution effect of convertible bonds as well.Chapter four: By comparing the relative advantage of convertible bonds with the other simple creditors'rights and stock rights financing's,summing up the real motives and causes for companies to choose floating convertible bonds , moreover,by binging in the factor such as information unsymmetrical cost, financial crisis cost and agent cost,it considers that the financial features of companies have implied the external financing cost related indebtedness and equity, besides, the major reason why companies choose convertible bonds is to reduce various external financing cost.Chapter five: using the experience that Lewis, Rogalski and Sewand(1999), applied standard Black-Scholes option formula to the calculation of conversion probability, it classifies all of our country's listed companies floated in Shanghai and Shenzhen since 2001 as equity-like and debt-like. Meanwhile,by making use of empirical models such as simple variable analysis and Logistic Model, this thesis tests the relationship between the motives plus causes for our nation's companies floating convertible bonds and external financial cost.Chapter six based on the rhetorical analysis plus demonstration conclusion in the above chapters and the objective situation of our nation,it makes some related proposals.This thesis systematizes predecessors'research, analyzes the motive and causes of companies to choose convertible bonds, makes a analysis on the floatation motives and causes of our country's listed companies choosing convertible bonds by the method of demonstration analysis. In addition, it gives some suggestions to solute the problems that exists the process of choosing convertible bonds in conclusions, and it is also hoped to be useful for companies to choose convertible bonds as a financing tool properly.The main contributions of this thesis:1.Research content: the domestic research on floatation motives and causes of convertible bonds was mainly carried on floatation threshold,nevertheless this article summarized the fundamental motives and causes of companies form the angle of external financing costs in a systematic way.2.Research method: the domestic research on floatation motives and causes of convertible bonds used normal research method mainly,nevertheless this article not only used normal research method but also some models such as simple various element analysis and Logistic analysis to study on the motives and causes of convertible bonds in a empirical way.