The Research On The Impact Of Convertible Bond Financing On The Business Performance Of Listed Companies

The convertible bond,a financial instrument with multiple characteristics of debt,equity and option,has received extensive attention from overseas markets and investors due to its unique advantages in investment and financing.The convertible bond started late in China.In recent years,with the increase of issuance and the expansion of financing scale,the importance of convertible bond financing in China's capital market has become increasingly prominent,which provides more subjects for professionals to expand their research.The relationship between convertible bond financing and issuer performance is one of the subjects with much attention.This thesis conducts a study on listed companies with convertible bond financing from 2006-2015.Based on the consideration of the profitability,growth,and cash flow,this thesis selects eight indicators to measure business performance,and forms a comprehensive indicator by principal component analysis.The regression analysis is used to test the business performance of companies before and after financing.The results show that the company's business performance has decreased in the two years after financing,which is significantly lower than the performance before issuance;the business performance of the companies with convertible bond financing has declined more than the companies without issuance.This thesis also shows that listed companies conduct earnings management based on different purposes before and after the issuance of convertible bonds,which affect the performance of companies to some extent.At the same time,some investors in the secondary market may be able to identify the earnings management behavior of the listed companies before issuance of convertible bonds,so they have the expectation of the company's performance decline in the future.This expectation will also be reflected on the stock price of the companies in the issuance year.Besides,the investment of the raised funds is also an important reason that affects the company's performance after financing.On the whole,the improvement of business performance through convertible bond financing has not been reflected in the current market data.For the last part,the thesis puts forward suggestions on how to improve business performance and how to improve the efficiency of convertible bond financing.