| Since the reform and opening up,China has made remarkable achievements in economic development.With the continuous growth of the real economy,the financial market has become more and more dynamic.Innovative financial instruments have emerged continuously.In 2013,with the upsurge of the capital market,the perpetual debt poured into China's financial market.In the past five years,the scale of perpetual bonds has been growing,and more and more industries and investors have joined the queue of perpetual bonds.In 2018,the early issuance of perpetual bonds gradually enters the exercise period,and issuers begin to face the choice of whether to terminate the contract.Due to the dual nature of equity and creditor's rights,the impact of perpetual debt on the financial situation of enterprises is complex and multifaceted.Due to the short history of perpetual bonds,the market's insufficient understanding of them and the imperfect regulatory system and policies,it is of great practical and research significance to study the motivation of perpetual bonds issuance and redemption and analyze the financial effects generated by them.In 2013,Evergrande group actively carried out financial innovation,transformed the traditional loan mode,and took the lead in issuing perpetual bonds,which began to be active in Evergrande financial statements.In the following four years,the scale of issuing perpetual bonds increased continuously,which became the second largest financing method of Evergrande.It not only supported the financing demand and strategic development of the company,but also brought many positive effects on the financial situation.In the first half of 2017,Evergrande repaid all outstanding perpetual bonds in one fell swoop,which caused strong market reaction.Evergrande's successful use of perpetual debt has had a profound impact on the domestic perpetual debt financing market.At the same time,its use of perpetual debt financing from issuance to redemption is also very suitable for studying the motivation of perpetual debt financing and its financial effect.Based on the above background,this paper selects Evergrande group as the case study.In this paper,case analysis method and comparative analysis method are combined to analyze and evaluate Evergrande perpetual debt financing activities from the perspective of motivation and financial effect based on relevant concepts and theories.By combining theory with practice,this paper analyzes the research conclusions and relevant theories,and summarizes the experience and enlightenment of perpetual debt financing.This paper mainly from the following five parts:the first part,introduction.Starting with the background and significance of the topic,summarizes and sorts out the relevant researches from existing literatures,proposes the research methods and ideas of this paper,and points out the innovation points and limitations of this paper.The second part introduces the perpetual debt and related theories.This part briefly introduces the general situation of perpetual debt,including the status quo of perpetual debt issuance,core terms and relevant accounting treatment,and summarizes the characteristics of perpetual debt according to the above three aspects.Among them,it mainly analyzes the new rules on the accounting treatment of perpetual debt and sorts out the process method for judging the accounting attributes of perpetual debt.Then the related theories are introduced to lay a theoretical foundation for the following analysis.The third part,Evergrande perpetual debt financing case introduction.This part mainly introduces the background for the subsequent case analysis.Firstly,it explains the reason why Evergrande perpetual debt financing is selected as the case study in this paper.Then,it introduces the development of Evergrande over the years,including Evergrande operation,financing and the whole process of using perpetual debt financing.The main contract terms of Evergrande perpetual debt are listed and analyzed,and the accounting attributes of Evergrande perpetual debt are judged again according to the new rules on the accounting treatment of perpetual debt.The fourth part,Evergrande perpetual debt financing motivation and financial effect analysis.This part is mainly divided into two parts:issuance and redemption.Based on the foregoing,it analyzes the relevant causes and financial effects respectively.Qualitative and quantitative comparisons were made between the financing methods of issuing perpetual bonds and other financing methods in terms of capital structure,cost benefits and financial risks.Meanwhile,the financial performance after the redemption of perpetual bonds was analyzed to explore the financial impact of perpetual bonds.The fifth part,conclusion and enlightenment.By analyzing the cases,summarizing the reasons of Evergrande issuance and redemption of sustainable debt and its financial effect,comprehensive display sustainable debt's advantages compared with the traditional financing,inducing the experience of Evergrande sustainable debt financing,excavating the case problems and enlightenment.Suggestions from multiple perspectives to provide the reference for the investors and related companies.As an emerging innovative capital instrument,the research direction of the financial instrument of perpetual debt in domestic academia is relatively concentrated.With the help of typical cases,this paper tries to analyze the issue and redemption of perpetual debt,explore the redemption of perpetual debt which with low attention,and sort out the newly issued provisions on accounting treatment of perpetual debt,hoping to provide some practical guidance for the practical operation of accounting division of innovative capital instruments in China.These are the innovations of this paper.Due to the limited ability of the author,the theoretical study of perpetual debt is not comprehensive enough,which may lead to insufficient evidence.Conclusions and inspirations are subjective to some extent.There may be insufficient applicability,which needs to be verified by practice and time. |
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