Selection Of Convertible Bonds And Listed Corporate Financing Methods

Convertible bonds (CB) financing is now emerging in Chinese capital market. Public company using this kind of financial instrument can help to resolve the problems of exorbitant equity financing scale, few security types and slow financing innovation in this market. Although some public companies have tried it in practice, and the domestic academia has showed much interest, mostly the focus is affected by security dealers and so, on the theory of CB pricing aiming at arbitrage. A theory about the characteristics, advantages and disadvantages of CB financing can hardly be seen. Our research begins with analyzing the economical inbeing of CB, summarizes the history and status in quo of Chinese CB financing. We conclude that CB financing can decrease many types of equity-related and debt-related costs in firm's external financing contrasting with debt and equity financing. We also contrast our experimental evidence in Chinese market with the overseas evidences, and find some characteristics and flaws of domestic issuers.Firstly, the thesis analyzes CB's property and inbeing using economics theories, and summarizes the history and status in quo of Chinese CB financing. Then we contrast it with the status in quo of developed countries. It gives a macro-analysis of the flaws of the Chinese CB financing, paving way for next research. Secondly, by using a simulative case, the thesis quantificationally analyzes how CB financing affects a public company's capital structure. In this case, we lay stress on the basic process of its dilution, tax shield and financial distress and the differences with debt or equity financing. Base it, we develop our research. On the basis of deeply comprehending, the thesis considers the internal cause of CB financing is to decrease many types of financing costs in the status of asymmetric information. So, creatively and systematacially, we divide them into agency costs, under-pricing and financial distress costs and risk uncertainty costs. By using two models and existing evidences, the thesis then discusses the relative advantages and appropriate firm's characteristics of CB financing. Finally, using SPSS 11.0, the thesis gives a statistical analysis of samples of domestic CB issues and relative industries' data during the years 2000 through 2003. It finds out the incentives of domestic CB issuers, and also, effects of issuer's characteristics and investor reactions on issue decision. The experimental evidences prove our theories and expose some characteristics and flaws of domestic CB issues. Base on them, the thesis gives some advices in the end.This thesis's innovative points include: 1) To the newest extent, it integrally summarizes status of domestic CB financing by public companies. 2) It gives a systemized theory about the internal cause of CB financing. 3) It gives an experimental study of all the representative domestic CB issue samples up to the present facing corporate financing.