Analysis On The Motivation And Financial Effect Of Convertible Bond Financing Of Listed Companies

As a hybrid financial derivative instrument,convertible bonds are welcomed by the domestic capital market,and the number of issuances is also increasing.For investors,convertible bonds can guarantee the minimum income,that is,they hold convertible bonds only receive principal and interest.It can also meet the requirements of investors who prefer high risk and high return,because when meeting the conversion conditions,investors can convert into shares in a certain proportion to achieve their own profits.For issuers,the threshold for the issuance of convertible bonds is relatively low.And financing costs are lower due to additional option conditions.There is no pressure to repay capital if all shares can be converted.The rise of convertible bonds in China is not too long,and there is less research on the entire process of convertible bonds issuance.This article first summarizes the current development of convertible bonds,domestic,and historical experience of convertible bonds,and then uses percentage of sales method combined with the calculation of financing cost to analyze the motivations for the "SanYi Convertible Bonds" and the impact on financial performance of the compan.This paper uses the event research method to analyze the market's response before and after the convertible bonds issuance.Finally,the conclusions and recommendations.According to the analysis,The issue of convertible bonds is affected by the the company's international strategy guidelines,short-term debt repayment pressure,and weak internal development.After the issuance of convertible bonds,Sany Heavy Industry's asset structure has changed significantly,such as short-term debt pressure has been significantly reduced,the asset-liability ratio has decreased year after year after issuance,and interest expenses have increased significantly.Adequate cash flow and the company's information construction have improved various indicators of operational capabilities to varying degrees,but the turnover rate of accounts receivable remains low and attention should be paid to the risk of bad debts.The shareprice of Sany Heavy Industry has been on an upward trend until the date of the event in the event window period,and reached the highest on the event day.The increase in Sany Heavy Industry's stock price and the broad market KLCI basically moved in the same direction.It is concluded that the choice of corporate financing amount and financing method should be combined with the actual situation of the company;the purpose of the raised funds should stand on the basis of the company's future development,and strengthen the follow-up fund management to avoid waste of funds;choose the appropriate timing of conversion Complete the exit.