Empirical Research On The Impact Of Exchangeable Bond Issuance On Company Stock Price

Exchangeable bonds are an innovative financial derivative that first appeared abroad and was favored by capital markets.Although scholars have done a lot of research on the announcement effect of this product,the results are different depending on the market.Studying the announcement effect of exchangeable bonds will help investors to better understand exchangeable bonds from the Chinese market,and it will also help enrich the financing options of the Chinese market.This article uses literature review and comparative analysis to combine theory with empirical evidence.Firstly,the theoretical basis of exchangeable bonds is explained,and on the basis of existing research by scholars at home and abroad,the establishment of the regulatory system,terms setting,innovative application and financing risks of exchangeable bonds are analyzed,and its issuance is analyzed following China’s actual conditions status quo.Secondly,this article uses all the exchangeable bonds that have been successfully issued from 2013 to June 2019 as the research sample.The study found that the announcement of shareholders’ issuance of listed companies has a negative impact on the company’s stock price.The total issue size has a positive effect,and the sum of the top ten shareholders’ shareholdings and the relative size have a negative effect.According to the empirical results,the reasons analyzed may have the following three points: Shareholders’ willingness to reduce holdings was leaked in advance,speculative reductions caused investor concerns,and issuer’s risk control awareness is weak.At last,this article puts forward suggestions from the perspective of the government,financial intermediaries,issuers and investors.