The Theory And Empirical Study Of Convertible Bond Financing

As the international securities market keeping increasing nowadays, especially in recent scores of years, convertible bond has been a hot point in many countries. In foreign financial market, convertible bond has already been a kind of mature financial product. It has also been an important investment tool.As for China's securities market, convertible bond used as a kind of new creative financial tool, has been a hotspot to financing people and investors. Gradually it has become a main tool of refinancing. Then what's the advantage of the convertible bond? Are there any differences between convertible bond financing and SEO( Secondary Equity Offering)? Which factors have impact on financial decision? What's the performance of convertible bond issuers? To answer these questions, this paper performed theory analysis and give the empirical analysis for convertible bond financing.This dissertation consists of 6 chapters as follows:Chapter 1 gives the research background of this paper and reviews researches on convertible bond financing.Chapter 2 gives the definition and features of convertible bond, then introduces the clauses and procedure of convertible bond offering in China.Chapter 3, 4 and 5 compose the core part of this paper. Chapter 3 analyses the theories of convertible bond financing, discusses the application of convertible bond in capital structure and agency theories, then concludes the advantage and disadvantage of convertible bond and the risks issuer has to undertake. Chapter 4 compares the differences between convertible bond financing and SEO, performs the empirical study of factors and performance of financing. Based on the above chapters, chapter 5 studies the difference between convertible bond financing in industrial classification, explores the problems of convertible bong offering in China and gives the measures.Chapter 6 is the conclusion.