| As a new kind of financial instruments, the emergence of convertible bonds brings a new atmosphereto the mature capital market. It has played an important role in the foreign history due to its dual characteristics of the stocks and bonds. From the actual situation in China, the bond market only takes a small part of our financial market’s structure. What’s more, most of the company will choose the equity instead of bond to find further capital and they will consider equity as free money from investors. This behavior is bad for the future development of capital market in China. Compared with stocks, the issuance of convertible bond has a positive effect on the company capital structure and it can improve the performance of the company. Therefore, it isa very important topicto deepen the understanding of the convertible bond and master its role in the domestic capital market.This thesis analyzed the performance of 47 convertible bonds issued on Shanghai and Shenzhen market. We try to study the risk indicator and financial indicator of two groups of company which can well represent the corporate finance. And then we witness the difference situation in different time. After using Wilcoxon signed-rank test to check the different performance of the companies, we find that those who issuing the convertible bonds is usually the high quality company in the industry. In order to meet the basic requirement of convertible bonds, this kind of companymay modifythe financial statements, so the company’s performance appear obvious decline after one year passed. Finally, we analyzed the performance of 9 companies which issued convertible bonds in 2007, and put forward some relevant policy suggestions of the development in the domestic bond market. |
