Research On The Company's Convertible Bonds' Financing Decision-making And Financial Performance

With the adjustment of the refinancing policies of listed companies by the CSRC,new developments have taken place in China's convertible bond market,and the number of convertible bonds has increased significantly.Zhongding is a leading company in the automotive rubber parts industry,and Zhongding convertible bonds are the largest convertible bonds issued since the listing of Zhongding shares.Research on them is of interest to the industry and it also provides Can enrich the case studies of convertible bonds.In order to explore the factors that may influence Zhongding's shares in making convertible bond financing decisions and to more intuitively understand its market reaction and corporate performance levels before and after issuance of convertible bonds,this paper first summarizes the Chinese convertible bond market.The status quo and new regulations for refinancing will sort out the research on the company's convertible bond financing,and then introduce the relevant concepts,and compare the convertible bonds with other refinancing methods,and also implement various indicator weighting methods.After the comparison,the basic situation of the case was introduced.At the same time,the actual cost of Zhongding's convertible bonds was measured and explained.After that,the factors affecting Zhongding's decision to make a convertible bond financing were analyzed in detail and based on the event study method.The market's response to the issue of convertible bonds by Zhongding shares was analyzed,and the entropy method was used to assign indicators to calculate the company's performance level before and after issuing convertible bonds.Finally,based on the above analysis,conclusions and recommendations were drawn.After the above analysis,it was found that Zhongding's convertible bond financing was influenced by various factors such as the development status of the company,capital status,capital structure,debt repayment pressure,and financing cost constraints,and the market issued convertible bonds to Zhongding shares.There has been a more positive reaction,and the performance of the company after the issue of convertible bonds has also risen.The author believes that many companies have flocked to the convertible bond market under policy support.Under such an external environment,enterprises should still rationally analyze and consider their own capital structure when making financing decisions for convertible bonds.Accepted debt repayment pressures and financing costs and other factors,while the government and relevant regulatory agencies are actively promoting the development of the convertible bond market,they must also strengthen the supervision of the convertible bond market,strictly review fund-raising projects,and increase the transparency of information disclosure.