Research On Financial Characteristics Of Firms That Issue Convertible Bond

Convertible bond now has become the quite mature and universal instrument for investment and finance in the capital market all around the world by more than 160 years development and several times big innovation as a finance innovative instrument. Our country's convertible bond market comes lateness relatively, but along with the emergence of "about the notice of issue work of convertible bond listed companies", our country's convertlble bond market presents high speed development posture with the continual enlarging market size. Presently, convertible bond has become the "three carriage" of refinance of our country's listed companies with additional issue and match section head by head.This paper firstly analyzes the finance characteristics of convertible bond, match section and additional issue comparatively qualitively from the finance policy lay, which contain the comparative analysis of earning ability, capital structure and finance size. Both additional issue and convertible bond request average net capital profit rate in recent 3 years is not less 10% from the aspect of earning ability, which is higher than 6% of match section; The capital debt rate of convertible bond after issue is not lower than 70% from the aspect of capital structure, the regulation of additional issue is that the capital debt rate before issue is not lower than the average level of the same industry listed companies, convertible bond requests 100 millions upwards from the aspect of issue size, but this rule is not playing the role in practice basically.Then, there is all 141 listed companies according to the two comparative samples of convertible bond, additional issue and match section from 2002 to 2004, using its market exchange data and financial data to conduct demonstration analysis. Firstly, adopting single-element analysis method to conduct "average diversity" t test and "median Mann-WhitneyU" test for explanatory variables, to provide a primary review for concerned two kinds bond issue companies remarkable diversity of financial characteristics. Then, using logistic regression analysis to conduct further review for the partial influence of explanatory variables in characteristics of issue convertible companies, additional issue and match section companies. Result shows:Comparativeness with additional issue and match section, our country's issue convertible companies have the lower debt rate, the better growth, the bigger size, the lower market price net capital rate, the lower current rate and the more concentration stock right. Both haven't the remarkable diversity in practicality capital proportion, cash variation degree and earning ability. Demonstration results doesn't support the foreign theoretical supposition of the motivation for convertible bond completely, and sums up the cause of hot issue for convertible bond in our country based demonstration data and analysis.