Research On Motivation And Financing Effect Of Sany Heavy Industry Issuing Convertible Bonds

The choice of financing method plays a crucial role in the development of enterprises.Efficient financing will enable enterprises to keep healthy operation.Convertible bonds,which combine the characteristics of equity and creditor's rights,are a new refinancing method in China's capital market,and have attracted more and more attention from financiers and investors.The introduction of convertible bond financing in China's capital market is relatively late,and the research on related convertible bond financing is still in the primary stage.In addition,the terms of convertible bonds in China are single,and the issuing time is not appropriate.Most companies can't convert stocks after issuing convertible bonds,and only a small number of companies can successfully convert stocks.There are many problems such as concentration of issuing subjects.The equipment manufacturing industry is the lifeblood of the national economy,and the operation of the equipment manufacturing industry determines the strength of a country's overall national strength.Therefore,whether the equipment manufacturing industry can raise funds efficiently determines whether the enterprise can continue to develop.Taking sany heavy industry issuing convertible bonds as a case study,the motivation of sany heavy industry issuing convertible bonds and the financing effect of issuing convertible bonds are deeply discussed,hoping to provide effective opinions to other companies issuing convertible bonds.After sorting and summarizing the domestic and foreign literature and theories on the financing motivation and effect of convertible bonds,sany heavy industry was selected to issue convertible bonds as the research object.Firstly,the motivation of sany cb issuance is analyzed from the aspects of capital structure,agency cost,equity return and financing cost.Second to sany convertible bonds of the actual calculated the cost of financing,at the same time will be financial index before and after the issuing of sany heavy industry and industry average comparative analysis,to explore the sany finances after issuing convertible bond,at the same time,the economy of sany heavy industry added value is calculated by analysis of sany heavy industry comprehensive performance after issuing convertible bonds.Finally,using the event study method,the excess return rate before and after the issuance of convertible bonds by sany heavy industry is calculated to analyze the market performance of sany heavyindustry's issuance of convertible bonds.The research found that the issuance of convertible bonds could bring sufficient financial support to the expansion of the company's overseas market and the transformation and upgrading of its core products.Although the asset-liability ratio of the company increased temporarily,the capital structure of sany heavy industry was optimized with the completion of the equity conversion.In the short term,sany heavy industry did not have a positive impact on the inventory turnover rate,fixed assets turnover rate and other financial indicators of operating conditions,but in the long term,sany cb has a positive impact on sany heavy industry's operating performance.Through the calculation of the actual cost of sany heavy industry,it is found that the financing cost of sany heavy industry to issue convertible bonds is relatively high,which makes the convertible bonds do not give play to the characteristics of low financing cost.When carrying out convertible bonds financing,listed companies should carefully choose the issuing time,reasonably design the terms of convertible bonds,improve the use efficiency of funds raised and establish a risk evaluation system,so as to give full play to the advantages of convertible bonds and promote the better development of enterprises.