Research On The Financing Risk Of The Convertible Bonds Issued By Shuangliang

At the beginning of 2017,with the introduction of new rules of refinancing of listed companies,private financing and other financing tools subject to certain restrictions,convertible bonds once again come to the public attention.Convertible bonds as a new type of financing,with the nature of claims,equity and options,plays a significant role in the diversified financing structure of listed companies in China.However,due to its market is still in the development stage,most of the listed companies that issued convertible bonds lack sufficient knowledge of the risk prevention and early warning management of convertible bonds,and the ability to defuse risk is insufficient.The purpose of the issuance of convertible bonds by listed companies can be carried out in a disguised and indirectly form through equity financing to achieve the final purpose of the conversion.Therefore,the listed companies do not pay attention to the design and application of convertible bonds in the financing process,which leads to the risk of financing activities.In the initial stage of the development of convertible bond in China,it is of great practical significance to explore the issue of convertible bonds in Chinese listed companies.Recognizing the status of listed companies issuing convertible bonds’ purpose and utility is necessary to reform the capital market and optimize the market structure.At present,the domestic scholars’ research of convertible bonds mainly focuses on the theoretical research on pricing model,announcement effect and stock price influence,but few case studies.From the perspective of risk analysis,the case of listed companies issue convertible bonds to finance is too rare.Therefore,this thesis selected listed companies Shuangliang energy which didn’t issue convertible bonds successfully in 2010 as a case study.Based on the large-scale resale of this event,the author analyzes the content from the point of view of risk identification and coping-the negative impact of risk coping-risk prevention and control.First of all,the author analyzes the issuance of convertible bonds to explore the motivation.The result of Shuangliang Convertible Bonds is deviated from its motive.Secondly,the author studies the risk of the company’s issuance of convertible bonds and discusses how Shuangliang can’t cope with the risks.Then,based on the fact that financing fails,the author analyzes the impact on the company from short-term market reactions and long-term financial conditions.Finally,the author puts forward the possibility of prevention and control from the different angles of the financing risk of the convertible bonds,and tries to discuss whether the financing risk can be reasonably avoided.The thesis aims to provide advice and case materials for other listed companies interested in the use of convertible bonds financing.