| Efficient financing is the basic guarantee for a company to continue its long-term operation.The choice of financing channels will have a significant impact on the future development of the company.Since the first convertible bond was issued by the American Railway Company in 1843,convertible corporate bonds have been welcomed by investors in the capital market as a new financing method that combines the dual characteristics of equity and debt financing.The development of China's convertible bond market started in the early 1990 s.Compared with western developed countries,China's convertible bond market was still in its infancy,and China's capital market has always had a high proportion of equity financing and investment.In the absence of varieties and financial innovation difficulties,it is necessary to launch financial products such as bonds and warrants as soon as possible and improve the relevant trading markets.As an intermediate investment and financing tool,convertible bonds will be beneficial to the maturity of China's capital market and the resolution of financial risks.China's capital market convertible bond financing was launched late,and the scale of the use of convertible bond financing by listed companies is not very large.The research on related convertible bond financing needs to continue.This article takes Ji Shi Media's case of issuing convertible bonds as the research object,and deeply analyzes the profound impact of issuing convertible bonds on the company's finance,with a view to providing reference for the theoretical research and practical activities of convertible bond issuance.Through the use of comparative analysis,event research and other theoretical research methods,This paper adopts the steps of asking questions,analyzing problems,drawing conclusions and suggestions.This paper analyzes the motivation of Ji Shi Media to issue convertible bonds from the main motives and other motivations in combination with the corporate characteristics and industry background of Ji Shi Media.This paper categorizes the main motivations as convertible bond financing reduces the financing cost of enterprises,convertible bonds financing can dynamically adjust the company's capital structure.The use of convertible bond financing can help alleviate the company's agency problems.At the same time,it is believed that endogenous financing can not meet the capital demand of Ji Shi Media project construction,and the buffering effect of convertible bond financing on equity dilution is also the other motivation for JiShi Media to choose convertible bond financing.In the analysis of the impact of the issuance of convertible bonds on the company's financial effects,this paper uses the internal rate of return method,calculation of earnings per share and diluted earnings per share,event research methods and other theoretical methods to analyze the effect on financing costs,financial operating performance,changes in shareholders' equity,and market reactions to the issuance of convertible bonds.This paper finds that JiShi Media's use of convertible bond financing has effectively controlled the financing cost.The increase of financial leverage optimizes the company's capital structure and enhances the company's profitability.However,the announcement effect of issuing convertible bonds is negative,which will have a negative impact on shareholders' wealth in the short term.This paper is divided into six parts.The first chapter clarifies the research background and significance of this paper,and reviews the research status of the analysis of the motivation and financial effects of convertible bond financing.The second chapter is an overview of the basic theory of convertible bond financing.This chapter introduces the concept and characteristics of convertible bonds and explains the motivations of enterprises to issue convertible bonds from three aspects: reducing corporate financing costs,adjusting corporate capital structure,and alleviating corporate agency problems.At the same time,it sorts out the classic theory of convertible bonds and the evaluation method of financial effects,providing theoretical support and paving for the following case analysis.The third chapter introduces the background and operation status of the case company Jishi Media,and then carries out the convertible bond financing plan from the three aspects of the raising scale,fundraising project and issuance clause of “JiShi Convertible Bond”.In the end,the process of issuing convertible bonds by JiShi Media was sorted out,and the conversion situation and the redemption of unconverted bonds were summarized.The fourth chapter analyzes the motivation of the company's convertible bond financing.This chapter turns the motivation into two aspects: the main motivation and other motivations.The fifth chapter analyzes the financial effects of the convertible bonds in four parts through detailed analysis.Firstly,the internal rate of return method is used to measure the cost of capital in various debt-to-equity swap and different years of existence.The capital cost is used to compare with the actual capital cost.Secondly,the financial performance of the company before and after the issuance of “Jishi Convertible Bonds” is vertically and horizontally compared from the three aspects of profitability,capital structure and solvency;then,from the perspective of earnings per share,this paper analyzes how the effect of equity dilution caused by the issuance of convertible bonds will have an impact on shareholders' equity.Finally,the event research method was used to analyze the market reaction of the issue of convertible bonds by Ji Shi Media and its impact on shareholders' wealth.The sixth chapter is the conclusion and enlightenment part of the case,in order to provide useful reference and suggestions for other listed companies in China through the analysis and summary of this paper. |
PDF Full Text Request