The Motivation And Performance Analysis Of The Issuance Of Convertible Bonds

Convertible bonds are hybrid financial derivatives.According to the terms of issue,holders can convert convertible bonds into shares under specific conditions.Because convertible bonds have the advantages of low financing cost,ease of equity dilution,and small cash flow pressure,it has always been favored by the investors and investors.The convertible bonds in the domestic development time is short,compared to its role in the international capital market,the domestic market maturity,product richness have great development space,1992 Shenzhen airport issued a "Baoan convertible" in Chinese listed companies is the first issue of the convertible bonds.Therefore,it is of great theoretical and practical significance to study the motivation and financial performance of convertible bonds in China.This article first collates the research literature of convertible bonds at home and abroad.Secondly,it further expounds the concept of convertible bonds and financial performance evaluation indicators.Thirdly,it makes in-depth research and analysis of the selected case--Donghua debt.In the case analysis,firstly,through the analysis of internal and external causes of the issuance of convertible bonds issuing convertible bonds in Donghua,we can draw conclusions about why choose Donghua software company;quantitative analysis and then use the event study method and index comparison method,the research on long-term performance of Donghua bonds are summarized;finally,based on the analysis of Donghua the convertible bonds motivation and the short and long term performance,concluded the research and Analysis on the case of Donghua bonds,enterprises choose days after the convertible bond financing mode put forward some advice.Because the author's research level is limited,and it only takes part of the financial data of Donghua software company,the relative financial indicators are selected for comparative analysis,and the reference data and the conclusion can not be applied to other enterprises.As a whole,the study of the Donghua transfer case is not comprehensive enough.The analysis of the motives of Donghua's convertible bonds is based on the internal and external motives of Donghua softwarecompany.The analysis of the motives of issuing convertible bonds is not fully representative.The result of the analysis based on the analysis of the financial performance of Donghua transfer is not enough to fully reflect the overall financial performance of the Donghua software.Further research will be carried out in this field in order to make up for the analysis defects of this article.