Corporate Bonds And Convertible Bonds In China Announcement Effect Of Comparative Analysis

Along with the continuous growth of Chinese economy during the recent30years, the number of enterprises in China is becoming more and their scale is becoming larger. As a result, there are more financing needs. In stark contrast, financing channels for companies are so few that they mainly rely on loans from banks and issuing stocks to satisfy their demands. However, other countries keep creating more financing instruments, so as to make their financing channels diverse. Instead of issuing stock, issuing corporate bonds is the most frequent way in capital markets in both Europe and the United States. The financing scale of corporate bonds is more than the sum of equities and government bonds. Even for the emerging economies such as India, Brazil and so on, listed companies also like to use corporate bonds to meet their funding needs, and now this is not a rare phenomenon.Based on some real problems that our enterprises face when they need financing, this thesis focus on corporate bonds and convertible bonds, which are allowed to issue in China. According to the methods of asking problems, analyzing problems and solving problems, observe how corporate bonds and convertible bonds impact the stock price, so as to systematically analyze and compare the announcement effect of these two types of bonds and explore the possible causes of their relationship.First of all, introducing the object of this thesis:corporate bonds and convertible bonds. Illustrate the basic situation and the current development of these two bonds in China, through the observation of their main information and their issuers. Secondly, by using event study method and the percentage of stock prices change to understand the relationship between the announcement effect of corporate bonds and the announcement effect of convertible bonds. Then, analyze which factors are the specific reasons of the relationship between two bonds announcement effect. Selecting a few of possible factors that may affect the announcement effect, building a multiple linear regression model, in order to make the causes clear. At last, list the structure of the analysis progress in this thesis and propose the opinion for the core research problem. On this basis, bring forward certain practical policies and suggestions according to the real situation to provide some help for the development of corporate bonds and convertible bonds in China.