Based On The Perspective Of Investor Sentiment, The Effect Of The Redemption Of Convertible Bonds Of Listed Companies On The Stock Price

Convertible bond is a hybrid financing tool with both debt financing and equity financing characteristics.Along with the constant developing financial market in our country,as a result of the convertible bond has the dual characteristics of equity and debt financing,the company issuing convertible bonds need to assume a lower financial cost,later can redeem announcement to prompt investors to conversion,so as to achieve the purpose of the equity financing.Therefore,it is favored by listed companies.The redemption clause is an important provision for the company to encourage investors to transfer shares.Based on the perspective of investor sentiment,the convertible bond redemption price effects and related influence factors,help companies,investors and regulators to realize convertible bondsin depth,and provide some reference to them.Firstly,the existing literatures in China and abroad are sorted out.On this basis,theoretical analysis and hypotheses are put forward.the event study is used to study the stock price effect of the redemption announcement issued by companies from 2006 to 2016.Study shows that:CAR[-20,0]is 5.27%significantly,CAR[0]is not statistically significant.,CAR[-1,1]is-1.66%significantly.As the days went on,the level of significance diminished.Then,this paper uses the multivariable linear regression model to study stock price effect,on the perspective of investor sentiment.The study finds that the short-term negative stock price effect can be explained by the financial leverage hypothesis,and the investor sentiment plays a positive regulating role.Finally,this paper summarizes the research conclusions and puts forward some countermeasures and suggestions.