Research On The Influence Of Convertible Bond To Stock Conversion On The Stock Price Of Listed Companies

In November 1992,the first convertible bond Baoan convertible bond was issued and listed,which means the first exploration and contact of convertible bond in China.After years of exploration,the scale of the convertible bond market in China has emerged in its infancy.With the gradual improvement of the market mechanism,the market participants will increase day by day,and the market influence will also be gradually enhanced.However,compared with the mature convertible bond market abroad,there are still some problems in the convertible bond market,such as imperfect information disclosure system,high issuance threshold,unreasonable clause design and uneven quality of investors.As an innovative financial instrument,convertible bonds The behavior of the participants in the conversion is different,so the impact on the stock price after the conversion is also very different.At present,there are few studies on the influence of convertible bond conversion behavior on company stock price in our country.Most scholars focus on the pricing principle of convertible bonds and the investment strategy of convertible bonds.Therefore,it is of great significance for all participants in the convertible bond market to study the influence of convertible bond conversion behavior on the stock price of the company,and it is also helpful to further study the convertible bond market.This paper mainly studies the influence of convertible bond conversion behavior on the stock price of listed companies by combining theoretical analysis with empirical analysis.This paper is divided into five parts.The first part introduces the development background of convertible bonds and the significance of this topic,and systematically expounds the existing research theories of convertible bonds at home and abroad.Finally,this paper introduces the research contents and methods of the article and makes an objective analysis of the innovation and shortcomings of the article.The second part mainly introduces the related theories of convertible bonds and the development of convertible bonds at home and abroad.Through the exposition of the related theories of convertible bonds,the third chapter is transferable.The theoretical analysis of the impact of bond-to-equity swap on the stock price of the company paves the way.The third part mainly expounds the related theories of the impact of convertible bond conversion on the stock price of the company,and based on these theories,makes a corresponding analysis of the current situation of the impact of convertible bond conversion on the stock price of the company in our country.It lays a profound theoretical foundation for the empirical part of the fourth part.The fourth part is empirical analysis,according to certain sample selection principle,through screening and elimination,finally collected the relevant data of 38 convertible bonds issued on the Shanghai Stock Exchange from 2006 to 2018.Bring the screened sample data into the established module The average excess return and cumulative average excess return of these 38 convertible bonds ten days after the day before the swap were obtained.Through the analysis of the data,the following two conclusions are drawn:first,convertible bond conversion will have a negative impact on the company’s stock price;second,the convertible bond conversion has no significant impact on the volatility of the company’s stock price.The fifth part is the conclusion and suggestion.According to the empirical results,this paper analyzes the negative impact of convertible bond conversion on the stock price of the company from the angles of equity dilution,information asymmetry,investor expectation,market supply and demand,etc.And from the intrinsic value of the stock,from the point of view of artificial operation,market supervision The influence of the convertible bond transfer unit on the stock price fluctuation of the company is not analyzed.Finally,this paper puts forward the corresponding suggestion to promote the sustainable development of the convertible bond market and make the convertible bond play its most important role in the capital market of our country.