Discussion On The Financing Case Of Baoxin Software Convertible Bond

Capital is the first driving force of enterprise economic activities.Only by ensuring stable cash flow can an enterprise achieve sustainable operation.Therefore,it is the top priority of every enterprise to consider how to finance and collect funds needed for operation efficiently.With the complexity and diversity of the market economy,the traditional way of financing has been difficult to meet the needs of corporate finance,a lot of new financing way also arises at the historic moment,the convertible bond is one of them,it is a fusion of equity,bond and option three properties of the mixed financing tools,then in a favored by the market.In February2017,the securities and futures commission told the implementing rules for the non-public shares of listed companies of some clauses modified,increased the offering,a rights issue,non-public stock financing constraints,but details especially pointed out that the reform does not involve the use of convertible bonds,thus the circulation of convertible bonds in the past two years into a blowout growth,there have been more and more enterprises choose convertible bonds in blindly,resulting in large scale back cause short-term funding problems such as stress or even bankruptcy.Therefore,further enrich on how in practice the correct selection and use of convertible bonds in research is very necessity,this article choose Shanghai treasure letter software co.,LTD as a case study,the first is to study like treasure letter software high-tech enterprises in growth period choose convertible bonds in reason,on this basis,the research on convertible bonds issued before and after the contrastive analysis of the effect of financial and market reaction,in the final analysis the cause of these effects,for other enterprises to issue convertible bonds financing activities provide useful Suggestions and reference.This paper is divided into five chapters: the first chapter is the introduction.This chapter firstly points out the significance and background of this paper,then makes a literature review and review on the issuing motivation,financing effect and causes of convertible bonds,and finally expounds the research ideas and methods of this paper and the basic framework of this paper.The second chapter is the theoretical overviewof convertible bonds.This chapter introduces the concept and characteristics of convertible bonds,and expounds the applied effect evaluation method,the motivation and theoretical basis of convertible bond financing,which provides the theoretical basis for the following case analysis.The third chapter is the case of baoxin software issuing convertible bonds.This chapter first has carried on the detailed introduction of treasure letter software,and then from the fund-raising scale and use,the distribution terms of two dimensions to the issuance of convertible bonds in this paper,introduce the implementation of the convertible bond financing process,finally to treasure letter software convertible bond financing of combined with the company's own business conditions and researches in the capital structure,and find the motivation to meet the needs of enterprise strategic expansion,seeking outside money make up for a lack of internal funds,refinancing deal to extend the set time,adjust the company's capital structure and reduce the cost of financing the five aspects.The fourth chapter is the financing effect and cause analysis of baoxin software convertible bond.This chapter,the first is financial effect were analyzed before and after the company financing,including financial effects of financial results(divided into profit ability,debt paying ability,operation ability,growth ability)and the influence of the cash flow of the enterprise,business activities,investment activities cash flow in cash flow,financing activities cash flow),the influence of the discovery after convertible bond financing change the financial effect of the enterprise get better;Then,the market reaction of baoxin software issuing convertible bonds is analyzed from the short-term cumulative excess return rate(CAR)and the long-term trend of stock price during the announcement window period.Finally issued from the timing,the distribution terms of design,the use of raising money,the dilution effect of companies issuing convertible bond financing effect causes were analyzed,and found that it is because of the issue of enterprises to choose the right timing,design the scientific terms,the reasonable use of the right to raise funds,reduce the pressure performance diluted precious letter that makes the software of the convertible bond financing in term of a smooth turn,produce better effects of financing.Chapter five is the conclusion and enlightenment of this case study.Based on the case of baoxin software issuingconvertible bonds,this chapter draws relevant conclusions and provides useful enlightenment for other listed companies in China to issue convertible bonds.The last chapter is the end conclusion of this paper.Through the research in this paper,several conclusions and inspirations on convertible bond financing are drawn.Firstly,high-growth enterprises are more suitable for convertible bond financing.In addition,in order to ensure the smooth conversion of convertible bond financing,enterprises should pay attention to the selection of issuing time,the design of issuing terms and the use of raising funds.