Research On The Effect Of Exchangeable Bond Issuance And Share Conversion On Stock Price

On October 14,2013,"13 Fuxing Debt" was the first SME private equity exchangeable bond in China’s history.It was successfully issued on the Shenzhen Stock Exchange and was fully converted in the second year of the issue.This landmark event indicates The exchangeable bonds have once again returned to the stage of China’s financial market,and its emergence has promoted the improvement of China’s financial market.Now,five years after this incident,the impact of the emergence of exchangeable bonds on its stock market needs to be empirically studied.Therefore,from the perspective of the effect of exchangeable bonds on the stock price of listed companies,this paper analyzes whether the issuance and conversion of exchangeable bonds in China market will not have a significant impact on the stock price of listed companies.Through this analysis,the exchangeable bonds will be slowed down.Whether the role of the restricted shares is lifted or not has been exerted,providing a certain degree of empirical research for its vigorous implementation in the financial market.This paper mainly studies whether the announcement effect and the conversion effect of exchangeable bonds will have a significant impact on the stock price of listed companies in the short term.On the theoretical level,the information asymmetry theory of stock price fluctuations and market timing theory are mainly used to analyze short-term announcements.The effect is to use the option theory of exchangeable bonds,the theory of optimal capital structure,the theory of stock intrinsic value and the effective market theory of stock price volatility to analyze the short-term conversion effect.This paper makes use of the methods of literature induction,qualitative analysis and event research.From the theoretical point of view,it conducts in-depth research on the literature and operating principles of exchangeable bonds.From the empirical point of view,it is mainly based on the indicator of return.The study judges the effect on stock prices by calculating the abnormal return rate of the window period and performing statistical tests on it.In the empirical study,the first is the empirical study of the stock price effect,which is based on the sampled 57 exchangeable bonds issued in 2013-2018,using the return rate of a stock minus the corresponding The market index return rate is calculated by the abnormal return rate calculation method to calculate the abnormal return rate of the window period.By analyzing the average abnormal rate of return and the cumulative abnormal rate of return during the analysis window period,it is found that the return rate of the exchangeable bond is not equal to the stock price of the listed company.Causes significant impact.The second is the empirical study of the stock price effect on the stock price effect.The study uses the screened 35 exchangeable bonds issued in 2013-2018 as a sample,using the same research method,and the exchangeable bond is converted to the stock market.The rate of return of the company’s stock price does not have a significant impact.From the results of the empirical analysis,it is known that whether the issuance of exchangeable bonds or exchangeable bonds reaches the conversion period,it will not have a significant impact on the stock price of the listed company in the short term.It further illustrates that the exchangeable bonds can solve the problem of lifting the restricted shares,and the implementation can not only cause the stock price to rise and fall,but also help the shareholders to obtain the income in advance.Finally,in order to promote the healthy development of exchangeable bonds in China,s capital market,and give full play to its role in slowing down the restrictions on the stock market,the paper proposes a few comments to improve the healthy development of exchangeable bonds from the perspective of buyers,financiers and regulators.