Investors' Irrational Stock Conversion Behavior Of The Convertible Bonds

Convertible bond,as the first financial derivative product launched in China's securities market,is an important financing tool and investment product.In recent years,with the maturity of China's securities market,the convertible bond market has also developed rapidly.However,because of the complex option nature of convertible bonds,the requirement for investors is higher than that of ordinary securities.In the process of continuous development,many investors also suffer huge losses.Therefore,the study of the rationality of the convertible bond's stock-swap behavior has irreplaceable practical significance in the current study of convertible bond in China.This paper studies the current situation of China's convertible bond market,and finds that China's convertible bond market is small in scale and relatively concentrated in industry distribution.In view of the behavior of stock-swap,the premium of stock-swap is small and uneven,but the proportion of stock-swap is relatively high.Firstly,3498 convertible bonds traded on the Shanghai Stock Exchange from January 1,2013 to December 1,2018 are selected as samples.According to the relevant theoretical research,the irrational stock-swap behavior is selected.Statistics show that 45.57% of the investors violate the assumption of rational economic man,which shows that there is an obvious phenomenon of irrational stock-swap in the convertible bond market in China.Then,this paper hypothesizes the possible influencing factors of irrational stock-swap behavior,and establishes eight and a half-parameter multiple regression model for empirical analysis by selecting the corresponding indicators.Finally,it is found that the information symmetry in the convertible bond market has a significant effect on irrational stock-swap behavior,and the momentum effect psychology of investors in the market.