Study Of The Influence Of Equity Structure On The Choice Of Bond Financing Instrument

In the bond financing market,the corporate bond and the convertible bond is widely used in recent years,as the main financing instruments.With particular characteristics which are equity and creditor's rights and option,convertible bonds can finance at lower interest rate,at the same time it can reduce agent cost and adverse selection cost,when which can instead of the equity financing way.While corporate debt can raise money without dilution of the company's equity,at the same time supervise management's behavior and reduce agency cost with the fixed interest form financial leverage.The choice of financing instrument is closely related to corporate governance structure.Namely,the different choice of financing instruments can form different behavior of management and supervision,at the same time,the existing equity structure affects the choice of financing instruments again.This paper studied the influence of the mainboard listed companys' equity structure to the choice of band financing instrument,compared with the gem.This research selected the main board listed companies which issued corporate bond and convertible bond announcement as the research object since May 2006 to June 30,2016.The study found that:On the mainboard of a-share market: When the company's equity balance degree is lower,the listed is more inclined to choose convertible bonds.The empirical result showed that the equity balance degree index significantly is associated at 10% level while the coefficient is 0.90.When the proportion of floating stock is lower,the listed is more inclined to choose convertible bonds.The empirical result showed that The floating stock ratio significantly is associated at 5% level while the coefficient is 0.012.Ownership concentration,managers ownership ratio,institutional investor shareholding and the nature of the actual controllers were not significant.Comparing with the mainboard of a-share market,the higher proportion of institutional shareholder and the equity balance degree,the listed in germ is more inclined to choose convertible bonds to finance.when the listed company intends to adopt debt instruments to finance,they should pay attention to the company where they are.Then to select appropriate bond financing instrument.According corporate governance requirements,they should attention to two indicators of balance of ownership,the proportion of non-restricted shares.Such as,when the proportion of non-restricted shares is high,the listed in the mainboard of a-share market should choose corporate bond to finance for corporate governance.For the government,on the one hand,it should strengthen the bond rating system,improve the relevant rules and regulations to promote and standardize the bond market development.On the other hand,it also should actively guide investors to rationally invest.For investors,they should analyze the company's information that the behavior of band financing conveys,according to its circumstance and the expectations of enterprises to make rational investment?...