Study On The Impact Of Exchangeable Bonds On The Performance Of Issuer And Underlying Stock Company

Since the successful issuance of the first private exchangeable bond 13 Fuxing Bond in 2013,my country's exchangeable bond market has achieved remarkable results,but compared with the mature exchangeable bond market system abroad,there are still many shortcomings.Exchangeable bonds contain call options.The issuer can achieve low-interest financing,moderate reduction of holdings and even arbitrage through capital operation.Investors can also choose to implement share swaps during the swap period to obtain the spread caused by rising stock prices.Exchange bonds have certain advantages and investment value.Exchangeable bonds are divided into public exchangeable bonds and private exchangeable bonds according to whether they are publicly issued.Compared with privately offered exchangeable bonds,publicly offered exchangeable bonds have more timely and sufficient information disclosure,and the issuance scale of publicly offered exchangeable bonds is much larger than that of privately offered exchangeable bonds.Therefore,this article selects publicly offered exchangeable bonds "17 Baowu EB" as a case,Research on the impact of exchangeable bonds on the performance of relevant main companies has certain representativeness,typicality and research value.On the basis of literature review,this paper analyzes the impact of issuing exchangeable bonds on the performance of relevant entities by combining the existing theories of information asymmetry and corporate financing,and then analyzes the case by combining the relevant data of 17 Baowu EB and exchangeable bonds.First of all,according to the issuing terms of 17 Baowu EB,the development needs of Baowu Group and the development status of the steel industry,this paper explores the internal motivation of issuing 17 Baowu EB.Then,according to the changes of relevant financial data after the issuance of 17 Baowu EB by Baowu Group,the impact of 17 Baowu EB on the corporate performance of the issuing subject is analyzed.Next,taking the exchangeable bonds listed in A stock market from 2013 to September 10,2020 as samples,this paper uses the event study method to explore the impact of exchangeable bonds on the underlying stock price,and further analyzes the impact of 17 Baowu EB on the underlying stock price of Baosteel.After that,the research conclusions of this paper are as follows :(1)for the issuing subject,the funds raised by 17 Baowu EB supplement the group's working capital,improve the short-term solvency of the enterprise,and optimize the capital structure;(2)For the underlying stocks,the analysis at the market level of exchangeable bonds shows that the issuance of exchangeable bonds will have a slight negative impact on the market performance of the underlying stocks,and the analysis at the case level supports the conclusion of the analysis at the market level of exchangeable bonds.In short,exchangeable bonds meet the financing needs of the issuer,supplement working capital,improve short-term debt paying ability and ultimately enhance corporate performance.However,it may reduce the corporate performance of the underlying stock company,and exchangeable bonds are difficult to improve the corporate performance of the issuer and the underlying stock at the same time.Finally,according to the analysis and conclusion of this paper,we get the following enlightenment(1)the issuer should set the release terms flexibly;(2)Investors should accurately judge the purpose of issuance;(3)Regulators should lower the threshold and strengthen supervision,so as to enable exchangeable bonds to improve the corporate performance of the issuer and reduce the negative impact on the performance of the underlying stock companies.