| The convertible bond enjoys great popularity among investors for its advantage of transferring from bonds to equity. Therefore, the time and quantity that investor choose to transfer is uncertain. It is complicated for scholars to explore the effect on the corporate value.In this paper, the corporate value can be divided into two parts, one is corporate intrinsic value and the other one is the market value. The former mainly refers to the business performance of company, and the latter one refers to the stock and bonds performance in the capital market. The research abroad on convertible bond mainly emphasizes on the analysis of issuance motivation, pricing of convertible bond and announcement effect after issuance. Domestic scholars mainly research the announcement effect and pricing. In fact, in the respect of corporate value influenced by convertible bond, the related research is rare. The majority ones research the influence of debt financing and equity financing to the company.Our paper combs the pertinent articles home and abroad, and establishes two models about why listed companies in our country need issue the convertible bond and after issuance, what influence the company will have. The former one mainly analyzes the reason why the manager has the motivation to issue convertible bonds; I find that Chinese convertible bonds are "equity-like". And in the latter model, I mainly analyze whether the convertible bond holders transfer the bond has an effect on the company’s liabilities level and the behavior of managers’investment, and then change the company’s value.Moreover, this paper adds the consideration of companies’types into the theoretical model. The model indicates that, companies which have good performance will lead to a slowdown in value, while bad ones will improve its value after issuing a convertible bond. Then I come up with three hypotheses: Chinese listed companies’liabilities level will be effected by the convertible bond issuing and the company’value will decrease. State-owned stake also have an effect on the value through changing the manager’s operation. Different company will have different changes in company’s value after issuing convertible bonds.In empirical analysis, this paper carries out the factor analysis to the index of our country’s listed companies which issued the convertible bond in1998-2013, then verify the three hypotheses. I find the former two are well tested but the third one.According to the theoretical result worked out in this paper, the convertible bond issued will make influence to the corporate value. The practical significance is that, to the issuing body, before choosing the way of financing, it is naturally to consider the matching between corporate own strength and the result of market behavior which might be appeared. To the market investors, before making the investment decision, it is necessary to research the corporate value, which will help investors to be more reasonable. Furthermore, to further adapt to the market development and promote the stable and rapid development of convertible development in country, the regulatory authority can subdivide the condition of issuing body in the specific design of laws and regulations.In addition, compared with the existing related research, there are three points about creation in this paper. First, the issuance models of convertible bond and corporate value influence are established in this paper and these two models both accord with the practical situation of our country’s capital market, which is partly verified in the demonstrational part. Second, this paper distinguishes the issuing body, and but not be verified by the specific analysis in the demonstration. Third, this paper comprehensively considers the corporate intrinsic value and market value, and will be more objective to the issuing body. |
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