The Impact Of Convertible Bond Financing On The Performance Of Listed Companies In Chinese Pharmaceutical Manufacturing Industry

As a new financing tool in the capital market,convertible bonds have been favored by Listed Companies and investors in recent years due to their dual characteristics of equity and debt.The domestic convertible bond market has been booming since 2017.With the outbreak of COVID-19 at the end of 2019,Chinese medical enterprises jumped to the main force of the epidemic.However,due to the small scale and weak strength of Chinese medical enterprises,strong financial support is indispensable for their development.Therefore,in recent years,some medical enterprises choose to issue convertible bonds to obtain financing.Because most of the existing studies on the impact of convertible bond financing on business performance do not distinguish between industries,the interaction between industries affects the research results.In order to avoid this problem,this paper only studies the pharmaceutical manufacturing industry,focusing on the impact of convertible bond financing on enterprise performance.Firstly,through theoretical elaboration,this paper analyzes the impact mechanism of issuing convertible bonds on the company’s operating performance.On the basis of theoretical research,this paper selects 15 convertible bonds issued by the medical manufacturing industry from 2012 to 2019 as the research object,and creatively selected two different control groups,namely,the companies that have not issued bonds and the companies that refinance by means of additional issuance or allotment.This paper selects eight representative financial indicators from different dimensions to comprehensively analyze the changes of business performance of the sample group through trend analysis and Wilcoxon signed rank test.Then,using multiple regression analysis,starting from the five indicators of asset liability ratio,total asset turnover,shareholder shareholding ratio,financial leverage coefficient and asset scale,this paper deeply discusses the degree of its impact on the company’s operating performance.The results show that:(1)The longitudinal comparison shows that the business performance of the bond issuing group has increased in the year of issuing bonds,but the performance of the latter year is not as good as that of the year of issuing bonds;The horizontal comparison shows that the change of business performance of the bond issuing group is better than that of the non bond issuing company,and second to the control group of additional issuance and allotment;This shows that although convertible bonds are beneficial to the operation of pharmaceutical companies to a certain extent,they are still in the primary stage and their development and application are not yet mature,this is a new discovery of this paper;(2)The operating performance of Listed Companies in medical manufacturing industry after issuing bonds is negatively correlated with their financial leverage coefficient,but positively correlated with their asset liability ratio,total asset turnover ratio,shareholder shareholding ratio and asset scale,and the influence of asset liability ratio is the most significant.Finally,based on the research conclusions,this paper puts forward relevant suggestions for the healthy and stable development of Chinese convertible bond market from three aspects:the pharmaceutical listed companies themselves,the laws and regulations of regulators and the information disclosure before and after bond issuance.