Research On The Relationship Between Corporate Governance And Convertible Bond Financing

With the development of China's securities market,more and more domestic listed companies are keen to choose convertible bonds.As one of the financing methods of listed companies,convertible bonds have developed very rapidly in China and have gradually become a financing way that investors pay attention to.Convertible bonds play an important role as financing method as we known,but also closely related to corporate governance.In this paper,based on the existing research results in China and abroad,based on convertible bonds to reduce the company s mechanism of action of agency costs,governance performance of the company are analyzed theoretically the influence of the convertible bond financing motivation,in order to explore our country's listed companies issuing convertible bond financing choice and the relationship between corporate governance factors,to standardize the convertible bond financing behavior of listed companies in our country,to improve corporate governance performance,to promote the innovation of the financial derivatives and play its positive role to our country capital market has a certain theoretical and practical significance.The purpose of this research is based on the current situation of China,the integrated use of the method of normative analysis and empirical analysis,based on the theory on the basis of through selected from 2006 to 2016 of Chinese listed companies to issue convertible bonds and the data of the public issuance as the research object,adopts the measure of corporate governance performance agency costs,the corporate governance and the related theories of convertible bonds,put forward the corresponding research hypothesis,and using the statistical theory of scientific statistics and analysis method of empirical analysis,using the empirical test to prove the validity of the hypothesis.The empirical results show that:(1)companies with high agency costs are more likely to use convertible bonds;(2)the larger the company,the more likely it is to have a convertible bond.The empirical study on convertible bond issuance motives,suggested to reduce agency cost in order to promote the company choose the convertible bond financing the decisive factor,then deducing that the company's poor performance is one of the important motivation of convertible bond financing.The research aims to provide a good reference to help the listed companies to choose convertible bonds financing resealable.Finally,this paper analyzed the convertible bond market development problems based on the results of the empirical research,and put forward to give enlightenment and Suggestions to promote the development of China's convertible bonds market.