Reasearch On The Financial Effect Of Convertible Bounds Issued By Tongding

Convertible bonds refer to the corporate bonds that an investor can convert to ordinary shares at a specific time and on agreed terms.As an innovative financing instrument appearing in the financial market,the innovation of convertible bonds is mainly reflected in the characteristics of debt,equity and options.Since the United States designed and issued the world's first convertible bond in 1843,convertible bonds have been favored by the securities market with its unique characteristics and become an important financing tool for developed countries.In the course of more than 170 years so far,the varieties of convertible bonds have become more and more abundant,and have been rapidly developed and widely used in the western securities market.In China,China Baoan issued the first convertible bond in the A-share market in 1992,marking the convertible bonds into China's capital market.Although convertible bonds have been practiced in our country for more than 20 years,compared with mature capital markets in western countries,China's convertible bond market started late and lagged behind.In general,the development of convertible bonds in our country is not mature enough.There are still many inappropriate places for listed companies to use convertible bonds to raise funds.Therefore,the research on the motivation and financial effect of convertible bonds has important academic and practical significance.This article uses the case study method to carry on the research.This paper first expounds the relevant literature at home and abroad,and then introduces the concept and characteristics of convertible bonds,as well as the motivation of convertible bond financing.In the part of case analysis,this paper focuses on the research of Tongding convertible bonds case,the event analysis method of the involved in the case of convertible bonds issued in the process of operating performance,corporate finance,equity and other related factors were analyzed,and further explore the convertible bonds impact on the bond market etc.This paper first studies the background and significance of research on the financial effect of Tongding convertible bonds briefly,followed by the analysis of the existing research on the theoretical basis of the convertible bonds and the main results of theoretical research for later study,briefly again on the Tongding convertible bonds issuance,including the basic situation of the main motive of the issue and the reasons,the bond issue cost;and then analyze the impact on the company Tongding convertible bonds and securities market and response,including the effects of bond issuance impact on the company's business situation,financial situation and the issuance of securities market Tongding convertible bonds generated,and based on the EVA analysis on the efficiency of convertible bond issuing comprehensive evaluation,finally the article draws a conclusion and related research.