Research On The Financial Effect Of Convertible Bonds Issued By Meifeng

Convertible bonds is a kind of financing tools which is more popular in the current capital market.Although convertible bonds appear later than the allotment,additional shares,ordinary bonds.It is favored by companies and investors in a short time.Convertible bonds is mixed financial tools,it has the general characteristics of ordinary bonds and also gives the conversion option to investors.Convertible bonds is an infinite investment tool with limited risk from an investor's perspective.If the investors choose to convert the convertible bonds into the company's shares,it means that investors become shareholders of the company and participate in the distribution of corporate profits,and even if they choose not to convert,they can obtain interest on a regular basis and recover the principal.For the company,the convertible bonds have the characteristics of large scale,less limited in issuance and also have the lower rate than ordinary bonds.Convertible bonds is more easily accepted by the original shareholders for that it can slow down the dilution of shareholders' equity compare to ordinary stock financing.With the popular of convertible bonds,more and more problems are worth to exploring.The article focuses on a series of financial benefits from the issuance of convertible bonds of Sichuan Meifeng.The main contents are as follows:The first chapter introduces the research background,the purpose and the meaning of the convertible bond.Then it mainly constructs the whole writing frame,selects the appropriate research method,and point out the innovation of this article.In the second chapter,I mainly summarize a large number of theory from domestic and foreign literatures about convertible bond,and also summed up the causes of convertible bonds,the effect of the announcement and the impact of convertible bond financing on corporate performance.In the third chapter,analyzing various risks and financing background of the company combined with the details of Meifeng,and then summarize the reason of issuing convertible bonds,combined with different circumstances to measure the cost of convertible bonds.In the fourth chapter,from the four perspectives of financial situation,ownership structure,dilution effect and shareholders' interests to analyzes the direct impact of the issuance of convertible bonds.In the study of the effects of dilution and shareholder interests,the comparative analysis method is used to compare the convertible bonds with other financing methods,summarize the advantages of issuing convertible bonds and the areas needing attention and improvement.In the fifth chapter,analyzes the comprehensive financial effect of issuing convertible bonds from three aspects: general financial effect,long-term comprehensive performance and market reaction.This paper analyzes the trends and causes of the relevant financial data in the two years before the issuance of the convertible bonds and the two years after the redemption,and then analyzes the short-term market reaction,the impact of shareholder wealth of the convertible bond issuance.In the sixth chapter,summarizing the main contents of this paper and putting forward the corresponding suggestions.