Corporate Bond Issuance Announcement Effect And Impact On Performance

At present, various ways to finance in our country, the bank credit financing is given priority to other securities,direct financing proportion is lower, and there exists the phenomenon of "light debt heavy stock". According to the national policy, the critical work of capital market during the period of "twelfth five-year" is to improve the market structure, vigorously develop the corporate bond market, steadily expand the corporate bond financing in the proportion of direct financing. However, such basic research about the economic consequences of issuance of corporate bonds in China is relatively scarce, disconnection between theory study and practice provide ineffective guidance for the development of corporate bonds, thus the economic consequences of China’s corporate bond financing is of great importance to study.This paper studied the economic consequences of a corporate bond issuance from two aspects:on the one hand is the impact on the company’s market capitalization; On the other hand for real results. Capital market stock price reactions to events is most sensitive, abnormal return of stock price can reflect the corporate bond issuance market reaction of this event, namely the announcement effect of corporate bond issuance. Based on the background of China’s current authorization, enterprises with financing needs to achieve distribution conditions before issuing or reduce the cost of financing by the motives of earnings management, this kind of behavior is very likely to affect the company’s operating performance after issuance.So,this article further verified whether there is a corporate bond issuance subject prior earnings management behavior, and quantify its effects on business performance. This paper has adopted the PSM matching method, divisions Jones model, the cross-section regression analysis and so on. In the end, this article’s main research conclusions are as follows:(1) the issue of corporate bonds with a negative announcement effect, and in front of the bulletin issued on the fifth day on the third day,in the (-5,5) window period produce-1.2556%of the cumulative average abnormal return;(2) in the preparing for corporate bond issuance, distribution companies have a relatively strong earnings management incentives, and the issuance of the company’s earnings management level has a significant difference in contrast to the company which have no corporate bond issuance;(3) on the statistical characteristic, samples of the company’s accounting performance in landslide during the study period, but the issue corporate bonds of the company before the issue of earnings management behavior did not cause a significant decline in performance compared with not issuing corporate bonds of the company on the whole.