Listed Companies In China Convertible Bond Financing Research On The Impact Of Capital Structure

By way of financing instrument, convertible bond plays an important function in international capital market. In this paper, according to the financing structure of the latest theory, starting from the financing structure and on the object of China's listed companies, on the basis of analyzing the financing behavior and financing structure of listed companies, looking for the factors that affect the capital structure of listed companies and exploring the ways to improve the corporate governance structure to realize optimization of capital structure of listed companies. In this paper, on the basis of analyzing the characteristics of convertible bond of China's listed companies, studying on the financing convertible bond and the impact to the capital structure has made some progress.The innovation of this paper as follows:First, for the system construction, the operating mechanism and environment of China's capital market have differences with Western developed-capital market; the paper integrates closely with the actual situation in our country and study on the option of the convertible bond. The research results not only can provide the important experience of choosing a reasonable financing convertible bonds, but also as the important reference of improving the regulatory system and policies, which is conducive to China's convertible bonds market.Second, the paper provides a train of thought for using convertible bonds and optimizing the capital structure of China's listed companies. The listed company's refinance only be carried out through the lettings and the additional before the convertible bonds became a way to the listed company refinancing, which resulted in China's listed companies have a strong "preferred equity financing." In this paper, through introducing the manner of convertible bond financing, at the same time, comparing financing convertible bonds with financing issuance of shares, the research results show that the convertible bond financing can optimize capital structure.Third, starting from the static trade-off theory, this article use Excel and SPSS16.0 software to analyze data, it mainly use a description of a single-variable statistical analysis, T test of independent samples, Wilcox on Z test and Logistic regression methods to research whether the two methods financing convertible bonds and financing issuance of shares meet the static trade-off theory or not. Inspected the differences between financing convertible bonds and financing issuance of shares in terms of taxation benefits, financial crisis as well as the size of company.The Empirical studies have shown that compared with the issuance of shares, the company which size of assets is larger , profit of net assets is lower , non-debt tax shield is less, fluctuation of earnings is larger, debt radio of assets is lower, has the tendency to select the financing of convertible bonds and achieve the optimal capital structure. The study found that the tax benefits assumptions and financial crisis assumptions, which on the basis of the static trade-off theory played an important role on interpreting the differences of the convertible bonds and the company's financial characteristics of the issuance of shares.China's listed companies through choosing the issuance of convertible bonds and the issuance of shares to achieve the company's optimal capital structure, which give the static trade-off theory a supporting studies based on China's data. The conclusions of this paper have important reference value to China's listed and non-listed companies to use convertible bond financing and achieve the optimal capital structure.