Research On Investment And Financing Convertible-bond-issuer

Convertible bonds develop not a very long time in China.from 90's to the present convertible bonds in our country has gone through three stages of development, first unsystematic to the present law, which shows in the capital markets continue to the development of the sound. As a financial derivatives, Convertible bonds have very good characteristics. Convertible bonds have a small equity financing dilution efficiency, bringing tax effect, low-interest rate debt financing,. Convertible bonds can reduce the business process as a result of information asymmetry arising from the issue of adverse selection. It is precisely because of these characteristics of convertible bonds.It is having very important practical significance that convertible bonds to the development of China's capital market. So who is going to issue bonds? Of course, the company, in this article based on the issuance of convertible bonds of the company, researchingthe issue of bonds the company's investment and financing behavior.The article first is abaot the characteristics of convertible bonds, then in-depth analysis why convertible bonds are better than the traditional equity financing and debt financing .from an analytical point of view the operation and management of convertible bonds will help reduce adverse selection. in financing There are also a great advantage the cost of convertible bonds. This was followed by an analysis of convertible bonds and dividends on investment behavior, that the enterprise value of the impact of retained earnings and dividends of corporate investment behavior, and retained earnings in accordance with the size of enterprises, identified five actions between enterprises, and further the use of computer simulation to simulate the existence of these five interval.In the end we analyze relationship between characteristics of investment projects and approachs of financing.we get a regression equation abont characteristics of invest- ment projects(including the amount of fund-raising, investment payback period, inter -nal rate of return, etc.)and finacing.it is very important to corporates to finace...