Analysis Of The Motivation And Financial Effects Of Convertible Bond Financing In Shengyi Technology Co.,Ltd

In the early 1990 s,convertible bonds were introduced into China,and it has been more than 20 years since then.To regulate listed companies in China use convertible bond financing of commercial behavior,the securities and futures commission released since 2001,a number of measures for the implementation of convertible bonds and regulations,to enhance the capital market in our country from policy position of convertible bonds,and because of its dual characteristics both bonds and stocks,convertible bonds favored by more and more companies and investors.This paper selects Guangdong Shengyi technology CO.,LTD.,which issued convertible bonds for financing in 2017,as the research object,and uses literature research method and descriptive research method to study the motivation of shengyi technology to issue convertible bond financing.Companies of similar size in the same industry were selected as the reference object,and the financial performance before and after the issuance of convertible bonds of shengyi technology was compared to analyze the impact of issuing convertible bonds on the financial performance of Shengyi technology.Finally,the enlightenment of this financing is obtained,and suggestions are put forward for the company to issue convertible bonds and other commercial activities,so as to help the company judge whether to use convertible bonds for financing according to its own situation.The paper consists of six chapters.First chapter for the introduction part of this article,introduces the research background of this article,and under the background of the current significance of writing this article,and the combing of the literature of previous part of the summary,mainly includes the research situation of the convertible bond financing motivation and convertible bond financing financial effect research present situation,and then introduced in this paper,using literature research,case analysis,descriptive data analysis three kinds of research method,and showed the frame in this paper,the basic content.The second chapter introduces the concept and development history of convertible bonds,the financing motivation of convertible bonds and other related concepts,which provides a reliable theoretical basis for the case study.Chapter three briefly introduces the electronic component industry of shengyi technology,and briefly describes the business performance and main business of shengyi technology in the three years before and after issuing convertible bonds.The third chapter first introduces the industry background and operation status of shengyi technology,the case company selected in this paper,then introduces the fundraising scale,fundraising projects and issuance terms of "shengyi convertible bonds",and finally combs the process of issuing convertible bonds of shengyi technology,and summarizes the situation of share conversion.The fourth chapter analyzes the motivation of shengyi technology to issue convertible bonds from four aspects.The fifth chapter is the performance analysis before and after the issuance of "shengyi convertible bonds",including financial performance analysis and market performance analysis.The sixth chapter summarizes the case study of this paper,and concludes that the issuance of "biobeneficial convertible bonds" can reduce the financing cost,alleviate the equity dilution problem caused by equity financing,and adjust the capital structure,so as to provide reference for other companies in China's semiconductor and electronic components industries to use convertible bonds for refinancing.