The Choice And Effect Of Listed Companies' Convertible Bond Issuing

Convertible bond(CB)is a hybrid financing instrument that combines share options and bond characteristics.Since its inception,it has rapidly become one of the mainstream financing methods in the world.CB has been in China's capital market for more than 20 years,and is experiencing a new round of rapid development after its beginning,growth and transition period.As an important means of refinancing,CB has two issuing modes:public offering and private offering.They have different types of motivation,implementation strategy and economic performance.Previous researches on CB are mainly concentrated on performance assessment,pricing model,provisions analysis,etc.But there are few studies on the difference between different ways of issuing and the listed companies' choice about the issuing modes.Based on Tsingtao Beer and Yanjing Beer,this paper is trying to analysis the difference between the motivation,terms and performance of their convertible bonds and provide an evaluation basis for the rationality of the choice of convertible bond issuing.The main conclusions are: Public offering CB and private offering CB are mainly motivated by low cost backdoor equity financing;Compared with the public offering CB,the implementation strategy of private convertible bonds is more flexible and convenient,which can be tailored for listed companies;Two issuing modes both can help to promote the efficiency of asset use,but public offering CB will reduce profitability and solvency,while private offering CB won't.It is suitable for listed companies with public offering conditions,risk aversion and conservative financial policies to choose public offering to issue CB;A listed company with difficult financing,financial pressure and special needs is suitable for issuing CB in a private manner.This paper has some theoretical and practical significance for the issue of CB.