| Financing is one kind of finance management in company andenterprise, and the capital market is an important channel for companies'financing. In the recent 20 years that Chinese capital market has been setup, many new financing tools have been invented and developed, one ofwhich convertible bond is. Convertible bond has about 160 years history, and in the recent yearsconvertible bond has a big development in variety and it has experienced5 times' innovation. this has helped the issuing company make a flexiblechoice and arrangement according to actuality of capital market and itsfinancing need, and that is the reason that convertible bond has been akind of considerably mature and prevalent financing tool abroad. But it isnot long that convertible bond has appeared in China. Beforeexperimental issue in 1998, a very few companies used it. Convertiblebond becomes more prevalent because of the expanding financing needand acquaintance with the new financing tool and the relevant enactedlaws. From 2001 more companies have financed with convertible bond inthe capital market, which is a new challenge for convertible bond market,and the research on convertible bond is in need. It can be found from the actuality that many companies didn't makegood use of convertible bond because they are not acquainted withconvertible bond and little theory support, so the need to research it isvery seriously. So this dissertation is about to research how to finance convertiblebond. It begins with analyzing the actuality to put forward thesignificance, and it discusses the theory and application, and the lastproblem is to analyze it with a case. There the following four sections inthe dissertation: The first section, the development and actuality of convertible bondfinancing in our country. This section collects all the data about the issuedconvertible bonds before December 31st, 2003. It has been found fromthese data that convertible bond will become a kind of popular financingtool in the capital market and the actuality of its application was notsatisfying, so it is imperative to research the convertible bonds. The second section, uncover the theory of convertible bonds. Thissection is the key of this dissertation and discusses the relevant theorieson convertible bonds. Convertible bond is a complex financing tool, itseems to have the characteristic of both bonds and stocks, and it is embedwith option at the same time. Before applying it, deep research isnecessarily. Firstly, this section analyzes the speciality of convertible bond fromthe different aspects. This section pays more intention to its financialresults and put forward its financing characteristic——medium risk. Secondly, this section discusses the financing motivation ofconvertible bonds. After analyzing all the theories about financialmotivation, this dissertation discusses its motivation in the angel of thedevelopment of re-financing method, and puts forwards the reasons thatconvertible bond is so popular. Lastly, this dissertation gives a quantitative research considering itsfinancing results. This part compares stoke and ordinary bond andconvertible bond these three different financing methods and theirinfluences on the EPS, and then analyzes the diluent and indebted impact.At last it is concluded that compared with stock and ordinary bond, theconvertible bonds is the most beneficial to improve the EPS. The third section, the application of convertible bonds in our country.This section discusses how to apply the convertible bonds with the helpof relevant theories. Firstly, this section analyzes the financing strategy according tofinancing theories and gives my opinions on how to make good use ofconvertible bond. Two problems must be considered before issuingconvertible bonds: whether the convertible should be issued and then howto issue it——how to assemble the articles of convertible bond. The firstproblem is about to tell whether issuing company and issuing occasionand companies' financial status are proper to issue it, which is theprecondition for a... |
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