A Study On The Motivation And Performance Of Convertible Bonds Of High-tech Enterprises

As the business card of "made in China 2025",high-tech enterprises are the focus of the national innovation and development strategy,and promoting the development of high-tech industry is the key to achieving a strong manufacturing industry.However,most of the high-tech fields are exploratory,the R & D cycle of technology is long and uncertain,the investment risk of the industry is high,and the domestic market lacks the corresponding risk capital system,which leads to the current situation that the financing of high-tech enterprises is difficult and the financing cost is high.From the perspective of capital market financing in developed countries,convertible bonds are mostly used in high growth and high risk industries,such as high-tech enterprises,because of their unique design of bond combined with share transfer options,low financing cost and strong anti risk ability.Secondly,since 2017,China’s convertible bond market has witnessed explosive growth,and convertible bond,a financial instrument,has been favored by more and more investors.Can convertible bond provide a new way for high-tech enterprises to finance? How applicable is it for high-tech enterprises to use convertible bond financing?Based on the analysis of the characteristics of financing and convertible bonds of high-tech enterprises,this paper selects crystal optoelectronics as a typical case to study and summarize the financing problems,the causes of convertible bonds financing and the analysis of financing performance and efficiency of high-tech enterprises with the method of literature research,and combines theoretical research with empirical research In order to find a high-quality financing way for high-tech enterprises,this paper studies the motivation and performance of crystal optoelectronics using convertible debt financing.At the same time,I hope to provide more reference for financing decision-making of high-tech enterprises,and put forward corresponding suggestions for convertible bond financing policy.This paper finds that: the motivation of crystal optoelectronics to choose convertible bond financing lies in: first,to alleviate the capital pressure of project investment;second,to limit the issuance of targeted additional bonds,to try to realize "back door" equity financing through convertible bonds;third,to optimize the capital structure of the company by using convertible bond financing;fourth,to obtain low-cost funds;fifth,to avoid the rapid dilution of equity Interpretation and impact estimation.Convertible bond financing successfully alleviates the capital pressure of crystal optoelectronics and helps it realize "back door equity financing".At the same time,crystal optoelectronics optimizes the capital structure of the enterprise by using convertible bond financing,obtains low-cost capital and avoids the rapid dilution of equity by equity financing.Convertible bond financing has enhanced crystal optoelectronic’s short-term debt paying ability,operating ability and profitability.Meanwhile,crystal optoelectronic’s issuing convertible bond financing behavior has a good announcement effect,bringing good market response.Crystal optoelectronic’s share price has achieved excellent market performance after issuing convertible bonds.Based on the case study,this paper holds that it is suitable for high-tech enterprises to choose convertible bond financing.