An Analysis On The Financing Motivation And Effect Of Convertible Bonds Of Yanjing Beer From The Perspective Of Life-cycle

Convertible bonds have ushered in a new development because of the new refinancing rules on the IPO,additional issuance,rights issue and non-public share issue to raise funds to set the financing cooling-off period restrictions.The motivation of convertible bonds has always been the key content of convertible bonds research.There are many hypotheses about the financing motivation of convertible bonds at home and abroad,but these researches are more focus on the empirical studies with fewer case studies,which also do not consider the impact of the life-cycle of enterprises on the financing of convertible bonds.The research on the financing effect of convertible bonds is more based on the analysis of post-financing financial performance,and the evaluation focuses on the analysis of financial indicators,without involving the current financing effect.Therefore,the financing effect of convertible bonds cannot be comprehensively evaluated.This paper used the research results that the life-cycle impact corporate debt financing for reference,based on relevant theories and refined convertible debt financing in debt financing.The applicability of convertible bonds financing in different life cycles was compared and analyzed,the motivation of convertible bonds financing was analyzed,and the financing effect was evaluated.Then took Beijing Yanjing Brewery Co.,Ltd.Convertible bonds as a case study,finally drew a conclusion.The case study of Yanjing Beer showed that in the growth period the issuance of convertible bonds influenced by the factors such as financing cost,capital structure,agency problems between management and shareholders and the enhancement of ownership concentration degree of major shareholders.At the same time,the financing effect of Yanjing convertible bonds can be evaluated from five aspects: stock price,financial performance,successful issuance,reselling and investors’ proportion.The results showed that the convertible bonds are suitable for enterprises in the growth and mature periods.In addition,it was found that the agency problem is the main factor which influenced the issuance of convertible bonds in the growth and mature periods.Marketperformance evaluation after convertible bonds financing is poor.In view of the part that cannot be further explored in the research,the paper proposed the enlightenment of the future research direction.It is believed that the company’s own characteristics need to be considered in decision making and the degree of corporate information disclosure may affect the financing of convertible bonds.