Study On The Financial Effect Of Convertible Debt Issuance By Tianjin Automobile Mould Co.,Ltd.

Convertible bonds have multiple natures of claims,options and equity.As a new type of corporate financing,they have a special position in the diversified financing structure of listed companies in China.In particular,after the new regulations on the refinancing policies of listed companies in 2017,re-financing instruments such as the number of private placements and the amount of funds raised are subject to certain restrictions,and convertible bonds have once again received attention.Compared with the mature development of foreign convertible bond market,the development time of convertible bonds in the Chinese market is shorty the market environment is imperfect,and the market base is insufficient.At the same time,mature theoretical guidance has not yet formed a system.Relevant laws,regulations and systems need to be improved and cannot develop with the development of the convertible bond market.Therefore,domestic scholars should further improve and enrich the research on convertible bonds.This paper takes the case of Tianqimo's issue of convertible bonds as the research object,calculates the actual financing cost,and analyzes the short-term market reaction and the company's capital structure,solvency,profitability and development capability after the issuance of convertible bonds.Impact.The study found that the financing cost of issuing convertible bonds was appropriate,optimized the capital structure of Tianqimo,and improved long-term solvency.However,due to the improper timing of the issuance of convertible bonds,the problem of improper design of convertible bonds was caused by the short-term market reaction of Tianqimo.Coupled with the unreasonable use of funds and long payback period,it has a negative impact on the company's profitability and development capabilities.Therefore,based on its existing problems,this paper proposes a prudent choice of favorable convertible bond issuance opportunities,rationally designs the terms of convertible bond issuance,reasonably controls the impact of stock price fluctuations,exploits the advantages of eonvertible bond financing,and solves the problem of rational use of funds raised according to cost-benefit matching.The plan provides a reference for Tianqimo and the same industry enterprises to issue convertible bonds for financing.