Research On The Motivation And Performance Of Convertible Bond Issuance By Listed Companies

In recent years,with the promulgation of the new regulations of the SFC on refinancing,the threshold of refinancing for listed companies has gradually increased,and the refinancing mode of enterprises has also changed.The scale of equity refinancing in the A-share market in 2017 has shrunk by a quarter from2016,from 1.71 trillion yuan to 1.28 trillion yuan.As far as the number of cases is concerned,there are 547 fixed-increase and allotment companies in 2017,which is one third less than 2016.But in 2017,the number of companies issuing convertible bonds reached an alltimehigh,and the financing scale of convertible bonds also increased significantly compared with previous years.Limitations on issuance of equity allotment and fixed increase financing methods have led many enterprises to shift their refinancing methodsto c onvertible bonds.Generally speaking,the motivation of issuing convertible bonds is related to financing demand,cost,capital structure,agency cost and so on.After issuance,the performance of enterprises will also be affected slightly.In this paper,taking Shanghai Electric Group Co.,Ltd.as an example,taking the behavior of issuing convertible bonds for financing as a starting point,the motivation of issuing "electrical convertible bonds" is analyzed from the above four perspectives.The financial performance and market performance of the company before and after the issuance of "electrical convertible bonds" are studied in combination with a series of indicators.“ Electric Debt Conversion optimizes its capital structure,reduces financing costs,increases shareholders' short-term wealth and enterprise value,and enhances the company's long-term solvency.It is hoped that through the analysis of this case,it can provide relevant reference opinions for listed companies when issuing convertible bonds in practice.