Research On The Impact Of Convertible Debt Financing On The Performance Of Family Firms

Because the convertible bond has the dual characteristics of equity and bond,and can convert the right of stock,it is a disguised option nature.Convertible bonds are widely used and mature in the international capital market.With the rapid development of the domestic economy and the continuous maturity of the financial market,convertible bonds are also widely accepted and applied in the domestic capital market.In the traditional financial theory abroad,as long as it meets the requirements of reasonable issuance,the issue of convertible bonds can solve the predicament of financial pressure of enterprises.At the same time,the issuance of convertible bonds can also help to improve the financial performance of enterprises.Based on this,this paper is devoted to studying the impact of convertible bonds issued by family enterprises on corporate performance.Firstly,this paper elaborates the background and significance of the topic,then reviews the global literature on convertible bonds,and on this basis,analyses and summarizes the impact of convertible bonds on corporate financial performance and internal mechanism,and elaborates the theoretical basis of the impact of convertible bonds on corporate performance.That is to say,to some extent,the issuance of convertible bonds can optimize the capital structure of enterprises;to some extent,it can ease the agency costs of enterprises;and compared with other financing methods,convertible bonds have lower financing costs.After the theory is clear,it begins to analyze the development status of convertible bonds and the problems studied in this paper.Then it enters the empirical analysis part,and through the principal component analysis,it can measure the performance of the company.Firstly,nine indicators are selected,the data are processed and the principal components are made.After analysis,the explanatory tables of total variance are obtained,and the top six common factors are queried in the explanatory tables of total variance.These common factors are taken as the principal components,and then the expressions of each principal component are obtained.Then,I calculate the expressions of annual company's comprehensive performance F by using difference contribution rate,and the expressions of annual company's comprehensive performance F are repeated.The above experiments.Next,unit root and cointegration tests are carried out,and use regression equation to do the regression analysis.The results show that the financial performance of listed companies is directly proportional to whether or notthey issue convertible bonds and the scale of issuance,and the scale of debt issuance can also affect financial performance to a certain extent.Finally,the possible reasons for the impact of convertible bond issuance on the performance of family firms are analyzed under China's national conditions.At the end of the article,I have some policy suggestions.