Strategical Analysis Of Targeted Convertible Bond Refinancing

During the process of development, especially when an enterprise is strong, absorbing foreign capital investment is common and it is a key process of expanding the scale and increasing the strength. The method of issuing targeted convertible bond is an effective measure of absorbing foreign capital.For a public company, targeted convertible bond can help high quality asset be immitted into company, expand business, improve asset structure and advance the effective collocation of resource, then the asset scale and ability of profit can increase rapidly. And in the aspect of finance, it can help increase the earning per share, decrease the level of asset-liability ratio. Besides, targeted convertible bond is in favor of the optimization of ownership structure and corporate governance, especially the important stockholder who is absorbed through the issuing of targeted convertible bond can improve the market operating environment and interior corporate governance environment. This paper chooses Qingdao Beer as sample of issuing targeted convertible bond, based on the research result of targeted convertible bond at home and abroad, researches the economic characters and strategical characters of targeted convertible bond, and the issue of optimization of interior corporate governance.First, the paper analyses the financial background of Qingdao Beer issuing targeted convertible bond, seeks the strategical financing motivation; then, analyses the price and action mechanism of targeted convertible bond, researches the relationship between bond cost and financial decision through analyzing the price of convertible bond. After that, the paper researches the effect of convertible bond towards the optimization of capital structure and corporate governance, and the significance to the sustainable development. At last, the paper discusses the theoretical and practical issue of personnel change and financial contract.It is very when targeted convertible bond is applied in the capital market, and bodies in the market have little understanding about its characters, and the understanding of targeted convertible bond is only at the lay of a method of refinancing. Therefore, the research of targeted convertible bond is not only in favor of reviewing and analyzing the practical change of debt financing in our market economy developing process, researching the significance of targeted convertible bond and tabling some proposal towards financial practice, but also has important effect of deepening the research of targeted convertible bond. At present, the mainstream of financial theory is the application of western agreement theory and political economy theory in the financial management and the research of capital market financial theory, especially the financing issues about issuing price of stock and ownership structure, but the research of debt financing is very weak. The research of this paper can increase the atmosphere of the research on the relation of financing and strategy. At the meantime, it can help induct the research of issuing targeted convertible bond into financial theory research.