Analysis Of The Financing Effect Of Convertible Corporate Bonds

In the process of the development of capital market,financing provides a guarantee for enterprises to obtain stable sources of capital for production and operation.On the basis of pursuing the symmetry of risks and benefits,enterprises use various channels and ways to finance,so as to disperse risks,reduce financing costs and ensure the stable development of enterprises through the combination of term structure and ownership structure while meeting financing needs.Convertible bond,as a refinancing method,has the unique characteristics of converting creditor's rights into equity,which makes investors and financing companies have relatively flexible options for risk,and is welcomed by listed companies and investors,and has become an important financing method.In 2017,the SFC issued a series of new regulations.Under the policy impetus,the fixed increase market is limited.Convertible bonds become more and more listed companies with financing intention because of their high efficiency of issuing and auditing and high passing rate.However,in the course of the development of convertible bonds,there are many cases where the failure of convertible bonds has brought great financial pressure to the company.Bao'an Convertible Bond issued by Bao'an Company in 1992 and Shuangliang Convertible Bond issued by Shuangliang Energy-saving Company in 2010 have failed in the final conversion due to improper timing of issuance and imperfect design of issuance terms,resulting in large-scale resale events,which has brought tremendous pressure on repayment of principal and interest and financial risks to the company.This shows that there stillexist in the process of refinancing convertible bonds issued by Listed Companies in China.Certain problems.Therefore,under the background that convertible bonds have become the preferred financing mode for more and more listed companies in 2017,This article takes the Gore Convertible Bonds issued by Gore Acoustics Co.,Ltd.as an example,and goes deep into the company's production and operation activities.Exploring the financing effect of the conversion of Gore convertible bonds on the company itself,mainly from the issue of the announcement effect,the impact on the capital structure and ownership structure,the long-term financial performance effect,and the impact on the value of the company,with a view to The research on the issuance of convertible bonds by Goer shares can provide reference for other listed companies that also have the intention to convert convertible bonds.This paper mainly discusses five parts: The first part is the introduction,focusing on the research background,significance and review of related literatures.The second part is related concepts and basic theories of convertible bonds,mainly explaining the related issues of convertible bond financing.The theory and the definition of related concepts;the third part is the overview of Gore convertible bond issuance and financing process,mainly introduces the financing motive of Gore convertible bonds,the timing of the issuance,the feasibility of the fundraising project and the specific financing implementation process.The fourth part is the analysis of the financing impact of Gore's convertible bonds.It analyzes the impact of Gore's convertible bond issuance on market reaction,capitalstructure and shareholding structure,long-term financial performance and corporate value.The fifth part is conclusion and enlightenment.