Analysis Of The Impact Of Corporate Convertible Bond Financing Behavior On Shareholders’ Equity

In 2017,after the China Securities Regulatory Commission revised the“Detailed Rules for the Implementation of Non-public Issuance of Listed Companies”,the threshold for equity financing such as private placement increased.Under this background,many companies turned to the convertible bond market for financing,but because of the convertible bonds and equity The characteristics of sex and credit rights make enterprises have an impact on their shareholders’ equity when they carry out convertible debt financing.The paper selects the convertible corporate bonds issued by Hunan Hualing Pipeline Co.,Ltd.as an example,and conducts an in-depth analysis of its issuance process to explore how to reduce the impact on shareholders’ equity under the premise of efficient financing in the process of convertible debt financing.Therefore,it can provide reference for enterprises that will issue convertible debt financing in China.The paper first summarizes the background of China’s convertible bonds,and analyzes the changes in China’s financing market after its historical development process and new regulations.It is concluded that China’s convertible bond market will flourish in the next few years.Secondly,China can The convertible bond market has the status quo of partial design,the dilution of equity,the increasing scale of financing and the increasing risk of financing,and discusses the factors that may affect shareholders’ equity during the financing process,including the underlying stock factors and ownership structure factors.The design factors of the clauses are finally analyzed.The real existence of these influencing factors and the influence of the control of the major shareholders and the equity of the minority shareholders are obtained through the analysis of the convertible debt financing process of Hualing Pipeline,and the relevant conclusions and recommendations are drawn.Through the analysis of the Hualing Convertible Bond financing process,it shows that the design of the convertible bond resale clause and the priority subscription clause,the number of the original shareholders’ subscription to the convertible bonds,and the ownership structure of the convertible bond issuer will all be somewhat It affects the original shareholders’ equity when the company conducts convertible bond financing.And the case revelation:the reasonable design of the preferential subscription clause can protect the shareholders’ rights and interests from the issue of convertible bonds.The unreasonable design of the resale terms and the return sale rate will increase the risk of damage to shareholders’ equity.The number of convertible bonds can not only affect the stock market sentiment,but also reduce the equity dilution effect of the convertible bond financing behavior on the original shareholders to a certain extent,and the ownership structure of the convertible bond issuers affects the large shareholders to the small and medium-sized Motivation of shareholder interests.Therefore,enterprises must realize the goal of maintaining the control of large shareholders and the equity of small and medium shareholders in the process of convertible debt financing.Convertible bond issuers should add reasonable provisions for the design of convertible bonds and increase the subscription amount of convertible bonds by the original shareholders.To optimize the shareholding structure of the company and reduce the motives of the shareholder’s interests,and at the same time strengthen the external supervision of the convertible bond market.