Research On Financing Performance Of ZD Company’s Convertible Bonds

As the scale of the company continues to expand,the financing needs of the company also continue to increase-Therefore,choosing a reasonable financing method is very important for the company.In recent years,the main methods for listed companies to refinance include public issuance,private placement,share allotment and issuance of convertible bonds.Since 2017,the state has introduced a number of regulations to encourage companies to issue convertible bonds,Because of the support of national policies and the advantages of convertible bond,convertible bond financing has gradually been favored by many enterprises.In 2018,the scale of China’s convertible bond financing has grown substantially,and the development momentum is good.This paper takes the convertible bond financing of ZD company as the research object.Firstly,it analyzes and describes the financing background and the financing motivation of ZD company.Secondly,it explores the behavior of convertible bond financing from the initial,middle and late stages.Finally,this paper analyzes the direct performance of convertible bond financing through the analysis of financing cost,capital use and performance commitment.And the impact of convertible bond financing on corporate performance is explored from the aspects of market performance and financial performance.This paper finds that ZD company combines its business plans,financing needs,financial status and the advantages of convertible bond in the environment where opportunities and challenges coexist,and finally chooses convertible bond as the financing method.In order to create a stable financial environment and ensure the successful issuance of convertible bonds,ZD company has designed clauses before the issuance of convertible bonds to balance the interests of issuers,shareholders and investors effectively.In the face of the resale crisis,ZD company has taken a number of effective measures to ensure a stable use environment for funds.After the completion of the project,ZD Company has taken the initiative to promote the conversion of investors through the redemption clause,successfully completed the convertible bond financing and achieved the scale effect.In the analysis of the effect of ZD company’s convertible bond financing,it can be concluded that ZD company has realized low-cost equity financing,made full use of the raised funds,and achieved performance commitments.ZD company’s convertible bond financing has produced a positive stock price response,effectively improved the financial status of the company and realized value added.The research results show that ZD company’s convertible bond financing has a good effect.The innovation of this paper is as follows:The financing behavior of ZD Company is divided into three stages for analysis,and the financing effect of convertible bonds is analyzed from various angles to enhance the persuasiveness of the article.The contribution of this paper is to further improve the theoretical research on the performance of convertible bond financing,and to provide reference for enterprises planning to issue convertible bonds in China.