Research On The Motivation And Effect Of Haier Smart Home’s Issuance Of Convertible Bonds

After China Securities Regulatory Commission issued new rules on refinancing in 2017,the supervision of traditional financing methods is more stringent,and listed companies turn their attention to new financing tools accordingly.Part of the characteristics of creditor’s rights and equity can be reflected in convertible bonds.Meanwhile,due to the nature of call option given by additional terms,convertible bonds can meet the demands of both creditors and shareholders.The flexible trading mechanism and low financing cost make convertible bond become the capital market financing trend tool.From January 31,2021,the latest management regulations on convertible bonds formulated by China Securities Regulatory Commission(CSRC)will officially come into effect,making clear provisions on the current overly loose trading mechanism of convertible bonds and imperfect information disclosure,which means that the trading,conversion and redemption of listed companies after the issuance of convertible bonds will be subject to stricter supervision.Listed companies should pay more attention to the use of convertible bond financing,avoid violating the current systematic and scientific management mechanism of convertible bond,ensure the success of stock conversion,and achieve the purpose of financing.Under the above background,this paper sorts out and analyzes the theoretical literature related to convertible bonds,and selects Haier,one of the leaders in the home appliance industry,as a case company,and systematically analyzes the whole process of Haier’s issuance of convertible bonds.Reasonable analysis of Haier’s reasons for choosing convertible bonds as a financing method,and believes that haier is in the case of a highly leveraged,In order to meet the financing needs and protect the original shareholders to make the most reasonable choice.This paper uses the event research method and financial analysis method to compare and analyze the effect of Haier’s convertible bonds from the two aspects of short-term market and long-term financial performance,compares and analyzes haier convertible bonds using shares,excess accumulative total yields,asset-liability ratio,sales gross profit margin of index changes,come to the conclusion that thinks the issue of convertible bonds lead to positive market reaction,help regulate the haier to optimize capital structure,Although there are shortcomings in the use of funds,it plays a certain role in promoting haier to improve its financial performance and realize its business strategy.Haier,the issue of convertible bonds can provide certain reference for other enterprises industry experience,but as a result of industry status and the company’s internal situation,and the issue of the measures for the administration of convertible bonds has tightened the convertible bond trading,rules and regulations of the related activities of,so other companies need to have some reference thoughts and change.