The Empirical Research On The Influence Of Chinese Listed Manufacturing Companies’ Ownership Structure To Convertible Bond Financing

Since the early20th cenury, convertible bonds come into our country. Convertible bonds get more and more attentions duing to the unique advantages in financing. Manufacturing and production activities in our national economy plays a very important position as a pillar industry. And the companies which issue convertible bonds mainly focus on manufacturing sector, so the listed manufacturing companies which issue convertible bonds are representative. The corporate governance structure and financing structure are mutual dependent and mutual promotive. Ownership structure impacts financing structure through the influence of financing activities. Ownership structure will infect decision if listed companies choose convertible bond which is a positive financing mode. Therefore, this paper will focuse on the manufacturing sector. Therefore, this paper will focuse on the manufacturing sector and develop a useful reference for the listed manufacturing companies which intend to issue convertible bonds through the research.In the theoretical section, on the basis of reading retated literature about ownership structure and convertible bond financing, the study comprehensively summarizes the related researches concerning the influence of ownership structure to financing and the motivations of issuing convertible bond. This paper comes up with the basic assumptions on the basis of stating related theorise and present situation in listed manufacturing companies.In the empirical section, the paper constructs comparable index system of the relationship between ownership structure and convertible bond financing based on imperfect information disclosure in the listed manufacturing companies and related theoretical analysis. Then, the investigation bases on data from a sample of40listed manufacturing companies those successfully issuing convertible bonds from2006to2010. And the investigation chooses the listed manufacturing companies as comparison sample that fit the issuance condition but did not issue convertible bonds. This paper sets up multiple logistic regression model to conduct empirical research. Empirical research has been done description analysis and regression analysis based on the accounting reports and describes the situation of the regression analysis based on the index system. In the last section, this paper points out the shortages and research proposals. This paper gives advice on how to utilize convertible bonds for the listed manufacturing companies and how to develop convertible bonds market for government from both micro and macro aspects, to develop a useful reference for legal policy of government departments and companies.The difference between this paper and the previous research is that indexes in previous research were single, while this paper will mainly discuss the influence of convertible bond financing on one side.(?) this paper Ⅰ will focus on the equity structure and analyze the effect of the indexes of equity structure on convertible bond financing in detail, then make empirical test. The innovation points of this paper are as follows, the domestic scholars generally use all industry data in relative study. But through the data analysis, I find companies that make convertible bonds issuance plan announcement are mainly belong to manufacturing business. Therefore, the industry of manufacturing is representative in convertible bond financing. At the same time, the fact that I choose manufacturing business can eliminate the interference of the industry factor, because the issue proportion of convertible bond is large. As a result, the paper makes an empirical analysis for manufacturing. I hope that this paper will provide reference for the manufacturing companies which have the intention to issue convertible bond.The purpose of this paper is to test if the ownership structure in the listed manufacturing companies affects convertible bond financing. This has an important effect on deepening the convertible bond financing research, perfecting the theorise of ownership structure. The research method mainly combines theoretical analysis and empirical test. Purpose of the study is to help companies better understanding the convertible bonds and through optimizing equity structure to make scientific financing decisions, to promote China’s convertible bond market develop more healthy and orderly.