Convertible Bond Financing Of Xiaokang Shares Impact On Financial Performance And Risk Analysis

In recent years,the "Four new Economy" enterprises oriented by new technologies,new industries,new forms of business and new models have developed rapidly.Among them,the new energy automobile enterprises,as the representatives of the "Four new Economy",need a large amount of capital input in each link of its industrial chain.Therefore,enterprises need to adopt reasonable financing methods to meet the capital needs of their development.Since convertible bonds have certain financing advantages and are supported by national policies,more and more new energy automobile enterprises focus on convertible bonds for financing.Compared with debt financing,convertible bond financing can effectively reduce the financing cost of enterprises.If investors choose to convert to equity in the later period,it will also reduce the pressure on enterprises to repay the principal and interest,and play a positive role in the financial performance of enterprises.But at the same time,convertible bond financing is also accompanied by certain risks.Due to the late start of convertible bond market in our country,most enterprises’ insufficient understanding and prevention consciousness on their financing risk and insufficient risk coping ability have resulted in some companies’ convertible bond financing failure.Therefore,it is very necessary to explore the impact of convertible bond financing on corporate financial performance and financing risks,and put forward corresponding risk countermeasures.This thesis takes Xiaokang Stock,the representative of new energy automobile enterprises with large financing needs,as the case object for in-depth analysis.On the one hand,the thesis analyzes the impact of Xiaokang Stock’s convertible bond issuance on its financial performance,mainly from three aspects: short-term impact,long-term impact and comprehensive impact.On the other hand,this thesis explores the financing risks of Xiaokang Stock convertible bond,mainly analyzes the risks of the issuer and convertible bond itself,and puts forward the corresponding risk countermeasures.It is expected to provide guidance for more new energy automobile enterprises when choosing financing methods,so that they can fully understand the impact of convertible bond financing on financial performance and accompanying risks,so as to effectively deal with the risks of convertible bond financing.In terms of analysis methods,this thesis mainly adopts event study method,economic added value method,entropy weight method and efficacy coefficient method to explore the economic consequences and financing risks of Xiaokang stock convertible bond financing.First,the event study method is used to evaluate the impact of convertible bond financing on the short-term performance of enterprises.By selecting relevant indicators to build a market model,the excess rate of return and cumulative excess rate of return before and after the issuance of convertible bonds of Xiaokang Stock are calculated,so as to evaluate whether the issue of convertible bonds brings positive shareholder wealth.Secondly,economic value added method is used to evaluate the impact of convertible bond financing on the comprehensive performance of enterprises.Finally,the entropy weight method and efficacy coefficient method are combined to screen financial indicators through correlation analysis and build a financial early warning model to measure the change of financial risks before and after the issuance of convertible bond financing by Xiaokang Shares,providing methods and ideas for enterprises to dynamically monitor the risk of convertible bond financing.