Research On The Performance Of Baoxin Convertible Bond Issuance

Financing is very important for the development of an enterprise.Financing channels can be roughly divided into equity financing and debt financing.The main characteristics of equity financing are the permanent use of funds and low financial risk,but its disadvantage is the dilution of corporate control.Compared with the characteristics of equity financing,debt financing can raise funds in a relatively short period of time and stabilize the company's control,but it will inevitably bring greater pressure on the company to repay its principal and interest.As an innovative financial instrument,convertible bond has the characteristics of stock,debt and option.With the flexibility of its terms and low interest rate,and the advantages of equity financing and debt financing,it has gradually become the main financing tool of listed companies.This paper mainly uses the research method of case analysis.Taking the event of Baoxin software issuing convertible bonds as the object of this case study,on the basis of theoretical research on the motivation of issuing convertible bonds and corporate performance of listed companies,this paper first studies the issuing process of Baoxin convertible bonds and the basic terms of Baoxin convertible bonds,On this basis,the paper also analyzes the main causes of the issuance of Baoxin convertible bonds and the changes of the company's performance.It is found that after the issuance of Baoxin convertible bonds,the capital pressure of Baoxin software has been significantly relieved,and it provides sufficient cash flow support for the company's new project construction and the company's strategic transformation in the future.However,it can not be ignored that in the quarter after the issuance of Baoxin convertible bonds,the financial performance,operational performance and market performance of Baoxin software have declined to varying degrees.Finally,through the case study of this paper,it is found that if the listed companies want to achieve the goal of supplementing corporate cash flow through convertible bonds,and reduce the short-term negative impact after the issuance of convertible bonds,they must adopt flexible ways to use convertible bonds for financing,the main means is to grasp the timing,scale,term,the price of convertible shares and downward amendment clauses flexibly,on this basis,they can only It can realize the innovation of convertible bonds.The purpose of this paper is to provide a reference for the listed companies that are ready to use convertible bonds for financing,so that they can make a preliminary judgment on the performance changes of the companies after the issuance of convertible bonds.