| The growing securities market has diversified the ways of refinancing among the listed companies, covering internal equity financing, bond financing, external equity financing and so on so forth. The selection of refinancing manner by listed companies is basically determined by financing cost. In the countries with well-developed capital market, listed companies usually consider internal equity financing first, and then bond financing, and finally the external equity financing. Nevertheless, in Chinese security market, most listed companies are prone to adopt external equity financing such as allotment of shares or issuance of new stock, which work rather inefficiently. Therefore, it is an inevitable trend for Chinese listed companies to develop bond market and accelerate the innovation of financing tools in order to diversify their refinancing.Convertible bond financing is a significant way of refinancing for businesses. With a history of over 150 years abroad, convertible bond is composed of a series of specific terms. The issuing companies can handle and modulate convertible bondflexibly to suit themselves in light of the existing capital market and their financing needs, building it to a fairly mature and common financing tool in the well-developed security market abroad. As for the security market in China, convertible bond has never drawn enough attention since it was first issued experimentally ten years ago as a new financing tool for listed companies. It has been getting better since 2001 with an increasing number of listed companies preferring convertible bond when financing, which leads Chinese convertible bond market to both challenges and opportunities of development.From a macro perspective, Chinese securities market can be further diversified with a mounting number of listed companies financing through convertible bond. Not only the financing channels have been increased, but also the items of investment in security market have been enriched. From a micro perspective, convertible bond proposes challenges to the operation, solvency, credit, and internal management of listed companies because of the payment of interests and principal, leading to sounder management and better performance. However for the time being, there are still many adverse factors hindering further development of convertible bond financing in China. As a result, the study on the problems underlying convertible bond financing by listed companies and their solutions is of both theoretical and practical significance.This thesis studies the advantages as well as risks of listed companies' financing through convertible bond from both qualitative and quantitative aspects, based on the analysis of the features of convertible bond. By comparing convertible bond in China with that abroad, this thesis studies the existing problems and their causes in Chinese security market, and finally offers some suggestions for the improvement and development of convertible bond financing for Chinese listed companies. On the basis of this outline, this thesis comprises four chapters, focusing on different issues.Chapter One studies the attributes and elements of convertible bond. In most literature, convertible bond is thought to bear double identities of both bond and equity. Yet, I would consider the attribute of option the third one for convertible bond besides the above two attributes. Section Two probes into why listed companieswould adopt convertible bond. Under certain circumstances, convertible bond financing shows its advantages over equity financing and bond financing. As a result, convertible bond financing draws more and more attention from listed companies. Since no financing tool can be void of risk, Sections Three makes it crystal clear to listed companies about the risks of convertible bond financing, which may be adverse to the issuing companies.Chapter Two discusses the development and status quo of convertible bond financing both at home and abroad, revealing great gap between them. Convertible bond h... |
PDF Full Text Request