The Research Of Chinese Listed Companies Financing Via Convertible Bonds

As a kind of important financing tool,convertible bonds,which are favored by listed companiesbecause of their unique advantages of both ordinary bonds and equities,have occupieda very important position in the financial market at home and abroadafter a long history of development.The paper is based on the analysis of the motivation of the convertible bond financing, focuses on the analysis of the effect of convertible bond financing, use the research methodcombining theoretical model analysis and empirical analysis, firstly use the theory of financing motivation as a basis, and analyze the convertible bond financing motivation according to the dual characteristics of convertible bonds and equities. On the basis of understanding the motivation of convertible bond financing, the financing effect theory is further analyzed, theoretical analysis model of convertible bond financing effect is builtthrough the theoretical analysis of the financing effect of convertible bonds.The unique advantages of convertible bonds financingare highlighted through the comparison with the direct equity financing in the debt effect and dilution effect.After the theoretical model analysis, this paper selects the recent historical data of the convertible bond market in our country as the sample, and carriesoutthe empirical analysis according to the theoretical analysis model. The empirical results indicate that the advantages of the convertible bond financing are more obviouscompared with the direct dilution effect and debt financing effect, the costs of equity financing could be greatly reduced, and they are substitute for common stocks.In view of the above conclusions, it is suggested in this paper tostrengthen the normsand assessment about the financial reports of the listed companies, reasonably design of the convertible bonds clause (especially, the stock price and the equity ratio clause), use modified stock prices affect conversion behaviors, and ensure the implementation of the positive effects of the listed companies'convertible bonds financing. At the same time, it is suggested to enhance the vitality of the companies'market and improve and optimize the companies' equity structures through the introduction of more private capital to the convertible bond financing.