Research On The Motivation And Performance Of The Issuance Of Blue-lable Converible Bond

Enterprises choose financing methods suitable for their own financial situation to obtain funds,which can continue to promote the development of enterprises.Financing methods can be divided into debt financing and equity financing.Equity financing will dilute the equity of the original shareholders,which will increase the risk of transfer of control rights,which is not conducive to the corporate governance of enterprises.Debt financing will increase the pressure on the company to repay the principal and interest.Without sufficient capital flow support,it will seriously affect the normal operation of the company.Convertible bonds have three characteristics of debt,equity and options,which make up for the insufficiency of equity financing and debt financing.The issuer can achieve the purpose of financing through flexible setting of terms and lower coupon rate.The release of new refinancing regulations in 2017 stimulated the rapid development of the domestic convertible bond market.However,what is the impact of convertible bonds on corporate performance,and whether companies can achieve long-term development through convertible bonds are issues worthy of consideration by the issuer.This paper selects the case of Blue Focus’ s issuance of "Blue-Label Convertible Bonds",aiming to study how convertible bonds affect corporate performance,so as to provide advice to companies that are about to or currently financing convertible bonds.Therefore,this paper firstly organizes domestic and foreign scholars’ researches on the impact of development factors,market performance,and financial performance,and defines relevant concepts.Then introduce a case to introduce the basic situation of Blue Focus and the entire issuance and survival process of "Blue-Label Convertible Bonds".Then,it analyzes the financing motivations from the macro and individual perspectives,and concludes that the use of convertible bond financing is influenced by the company’s international digital strategy guidance and short-term debt repayment pressure.Finally,the event research method is used to measure the short-term market performance,the comparative analysis method is used to analyze the long-term financial performance,and the entropy value method is used to determine the comprehensive financial performance,and the issuance performance of "Blue-Label Convertible Bonds" is studied from multiple perspectives.After the issuance of the convertible bonds,the shortterm market reaction was good,the capital structure was optimized,the growth ability was improved,and the comprehensive financial performance was stable and improved,but the improvement in profitability was not obvious.ratio and earnings per share.Draw conclusions and suggestions: choose the timing of issuance reasonably,strengthen the follow-up management of raised funds,and make up for the gap in external supervision.