Study On Motivation Of Convertible Bond Issued By Listed Companies In China

Convertible bonds both equity financing and debt financing double advantage has becomeChina’s listed company financing tools following the match and shares，and is a kind ofimportant financing tools, the issue motivation has been by academics attention.Based on the foreign variety of convertible bonds issued motivation theory hypothesis,regulated the use of analysis and empirical analysis method, study theoretically the issueconvertible bonds lower external financing mechanism of action of cost, summed up theconvertible bond issuers should have the company features. Comparative study through theunivariate analysis and binary Logistic regression analysis of convertible bonds were issuedsample and corporate bonds issued by the sample, review and theoretical expected conformitydegree, and why for not to make a reasonable explanation, explore the motivation of theconvertible bonds issued by the listed companies in China,the study found that:Convertible bonds of the company’s "high agency cost and adverse selection cost, thefinancial leverage, growth and the actual tax rate" three characteristics, only high growth verified,namely the existing convertible bonds issued motivation theory hypothesis cannot explain theour country basically the convertible bond issuance motives. This article think existing securitiesissuance review system framework, including company controlling shareholders and managers,"insider" pursuit of profit maximization is China’s control over the convertible bond issue ofimportant motive and main explanation.Finally, this article suggests that the market regulator should strengthen the convertible bondshave to publicity, improve regulatory policy, implement preferential tax rate standard, thecompany should continue to improve equity structure, guide enterprises set up financing costconcept and take own growth and risk characteristics.