Research On Financing By Way Of Issuing Convertible Bonds Of Chinese Overseas Listed Companies

The full name of convertible bonds is convertible corporate bonds. It is a hybrid financial product, but also has the nature of bonds and stocks. Because it has a special right holder, which can be within the specified time in accordance with the relevant requirements of the bonds into shares. Foreign investors continue to enjoy the dual attributes of convertible bonds advantage of this tool, while distribution companies also use this tool to achieve the purpose of financing.In this paper, the study of Chinese overseas listed companies object, select its convertible bond financing as the main research content to the principal-agent theory, capital structure theory as the theoretical basis, summarizes the status quo of convertible bond financing of Chinese overseas listed companies. And a unique private agreement for offshore convertible bond financing, combined with China’s context, further analysis of the overseas listed company private agreement convertible bond financing and its motives, financing effect. Finally, by the study of case, combining with the actual in-depth analysis of Chinese overseas listed company private placement of convertible bonds financing motive and effect. Through research, we want to develop our convertible bond market has reference.This paper can be divided into six chapters. The first chapter is an introduction. The second chapter is a literature review and theoretical basis. This paper focuses on the financing motive convertible bonds, convertible bonds affect the relevant literature on the company’s two aspects were analyzed and summarized. The third chapter of convertible bonds overseas listed companies financing the basic theory and analysis of the status quo. The fourth chapter of overseas listed companies private placement financing agreement convertible bond analysis, primarily focused on analyzing private convertible bond financing agreement motive, and the combination of private agreements to analyze the characteristics of convertible bonds issued results, the theoretical analysis of private agreement may be bonds have an impact on the corporate governance mechanism and thus have an impact on corporate performance.The fifth chapter is about case of private agreement for the convertible bond of Gome. Gome private agreements analyzed Motivation and convertible bonds financing the effect of financing, financing for the analysis of results, reflecting the effect of the change from the corporate governance structure and mechanism of the company’s performance in the actual case is further proof of the fourth theoretical Framework section. Chapter sixth is conclusions and recommendations.There are three main contribution of this paper:(1)The study is novel. Convertible bonds of domestic research literature limited to the basic objects of domestic listed companies, the paper of China’s overseas listed companies selected for the study, not only to consider the background of the company, but also into the overseas market environment.(2)Study the contents of the novel. Domestic literature on Chinese companies overseas IPO financing more, and for the listing of overseas listed companies to refinance the absence of research. Paper selected overseas listed companies to refinance our way of convertible bond financing for the research, analyzed the private convertible bond financing agreement, the domestic content of the research in this area is not much.(3)Research perspective is novel. Most of the literature of the convertible bonds is about corporate influence and performance aspects of the wealth effect, whereas the convertible bonds on the governance aspects of the study affect the company is not very rich, while most of these studies were analyzed between single relationships, in order to determine the effect of the issue of convertible bonds. This paper studies the effect of the issue of convertible bonds of private agreement, not to make a judgment on a single aspect of direct, innovative way to build a private agreement from the corporate governance structure of convertible bonds, the impact of the mechanism, and thus have an impact on company performance analytical framework.