The Empirical Analysis Of The Announcement Effect Of Convertible Bonds And Its Impact Factors

Issuing convertible bonds becoming the important investment strategy of raising fundfor listed companies. Since convertible bonds has double characteristics of both bonds andunderlying common stock, therefore, the impact on the stock price of the issue companyhas brought huge attention to academic research fields. This article choose26listedcompanies as study objects, which issued convertible bonds at Shanghai Stock Exchangeand Shenzhen Stock Exchange from2008to2011. Using analytic approach of event studyand assuming the issuance day as the key event point, the aim is to prove that the issuanceof the convertible bonds shall affect the stock price of the issue company positively.Furthermore, we also aim to find the factors that can affect the posting effects for theconvertible bonds issuance by adopting backward regression and one factor ANOVA.Based on the above study results, this thesis also provide some meaningful and rationalsuggestions for the investors and listed companies that interest in convertible bonds.