A Study On The Impact Of China 's Listed Companies' Convertible Bonds On Stock Price

Convertible into the China market has been more than a decade, Chinese convertible bond market is still in the immature stage. Convertible bonds both equity and debt of the characteristics of its complex characteristic value, has high research value. At present, China’s theoretical research on convertible bonds is more concentrated in the valuation of convertible bonds and convertible bonds issued notice of the wealth effect on, Study on relationship between the debt of the convertible bonds in the life cycle of an important node and the stock price is relatively rare.This paper uses the event study method, study a larger scale on 2007 to 2015 conversion behavior of the A shares of listing Corporation shares before and after the price change. A significant cumulative abnormal returns, verify whether convertible convertible bonds has the wealth effect, And the sample is determined by a certain index to classify the debt and the stock, The different nature of bias, respectively to verify the impact of convertible shares on stock price. The empirical results show that the conversion of convertible bonds has significantly negative cumulative abnormal return rate, conversion behavior will cause the underlying stock of short-term decline. Bias of shares of the convertible bond, conversion behavior leads to the abnormal return volatility, risk and return of investment is also a corresponding increase.The research of this article clear decline of convertible bonds equity scale behavior will cause the underlying stock price, the value management, the distribution firm can have great guiding significance of the convertible bond investors and potential investors to plan market concerns, and the wealth effect of convertible bonds on the conversion coefficient and the relevant pricing options the formula of convertible bonds play an important role in determining.