Research On Announcement Effects Of Listed Company's Convertible Bonds Issuance In China

Convertible bond is a kind of compound securities with the nature of stock and bond.For issuers,the coupon rate of convertible bond is lower than that of ordinary corporate bond,the issue costs are less,and compared with the stock,convertible bond can delay the dilution of equity;for investors,convertible bond can yield stable interest income when the stock market is low,and investors have the right to convert convertible bonds into specific stocks when the stock market is high.At present,the research on the announcement effect of convertible bonds in foreign countries has been more abundant,but because of the low maturity and low sample size of convertible bond market in China,the research achievement of convertible bond is less in our country,they focused more on the pricing problem and the order of financing preference.In the existing research results,there is no unified conclusion about the announcement effect of convertible bond.In this background,this paper discusses whether there are announcement effects in China's convertible bonds and the influencing factors of them,hoping that through these studies,we can have more in-depth understanding of the status and development of convertible bonds in China.In the light of the actual situation of China's capital market,based on the announcement of convertible bonds issued from 2001 to 2016,this paper selects 98 convertible bonds as the object of study,and use the event study to study the announcement effect.The empirical results show that the issuance of convertible bond can lead to positive stock price effect.And then this paper divides the sample into two groups with the split share structure reform as the demarcation point,and studies the announcement effect of the convertible bond issuance respectively.It is found that there is no significant announcement effect before the stock reform,and there is significant positive announcement effect after the stock reform.This paper analyzes the above results from the perspective of ownership structure,perfection of supervision system and corporate governance structure.subsequently,in order to study the influencing factors of the announcement effect of convertible bonds,this paper chooses the excess returns of the convertible bonds as the explained variables,the issuance of the company's asset-liability ratio,cash flow per share of operating activities,split share structure reform as explanatory variables,constructed a regression model.After the estimation by the weighted least squares method,it is found that the size of the company,the relative size of the company and ownership concentration is negatively correlated with the stock price effect caused by the issue of convertible bonds,and the asset-liability ratio,the cash flow per share,the return on net assets,the dummy variable is positively related to the stock price effect caused by the issue of convertible bonds.