Research On Influence Of Convertible Bonds To Corporate Value Of Listed Companies

In recent years,the outbreak of the financial crisis in 2008 has increased the leverage ratio of Chinese enterprises.The increase of leverage ratio leads to the accumulation of financial risks and hinders the development of enterprises.To this end,in the past two years,the country has increased the "deleveraging" efforts.In the process of deleveraging,convertible bonds become a kind of financial instrument favored by enterprises and investors,because it contains the characteristics of equity and creditor's rights,which can change the capital structure of enterprises and affect the value of companies in the process of investors' equity conversion.In 2018,67 listed companies issued convertible bonds,raising 99.45 billion yuan,about four times more than in 2016.Most domestic researches on convertible bonds focus on pricing model,stock price and issuing motivation,etc.,which have little impact on corporate value.This paper will study the improvement of the capital structure of listed companies after convertible bonds are exchanged for shares,so as to influence the corporate value.Besides,the issuing subjects are divided into state-owned enterprises and private enterprises to compare the differences of the influences of the two types of companies on corporate value,which has certain practical significance for the development of convertible bonds in China.This thesis first theoretically bases on the signal transmission theory,the dilution effect,selecting one-time announcement of the proportion of more than 30% of events since 2006,using event study method to empirically short-term changes of the market value,the results show that in the short term,the market price of the issuing company is falling,the result is obvious;Then this paper bases on capital structure theory,agency cost theory,choosing Tobin Q as explained variable,selecting expired convertible bonds of listed companies as research samples since 2006,using the available data of the capital structure and ownership structure to empirically test the influence of the value of the company,the results show that in the long run,the falls in the value of the company are in the majority,it does not accord with theoretical analysis.In addition,convertible bonds for equity have changed the capital structure of the company,and the capital structure is positively correlated with the company value.From the nature of issuing companies,the value of private enterprises has been improved,which is better than that of state-owned enterprises.Finally,the paper puts forward some suggestions on the management,capital utilization and investment of the company.