Study On The Financial Effect Of Convertible Debt Issuance By Guangzhou Automobile Group Co.,Ltd.

Convertible bonds have multiple natures of claims,options and equity.Its special nature provides a more flexible choice for the Refinancing Behavior of listed companies.With the implementation of new refinancing regulations,convertible bond has been favored by Listed Companies in China in recent years.Convertible bonds started earlier in the foreign market and have developed in a more mature place.However,in China,the development history is less than 30 years,lack of perfect practical experience and huge development space.After a certain understanding of the research results at home and abroad,it is found that the domestic research on convertible bond issuance is relatively macro,and the analysis of individual cases is less,which can not provide a more suitable reference for all kinds of Listed Companies in the market.In this context,this paper combs the existing research literature,and on this basis,selects GAC group,which ranks the top in the automobile industry,as the case study object,traces back the operation process of issuing convertible bonds in detail,and makes a reasonable analysis of the motivation of using convertible bonds as a financing method,and believes that the purpose of GAC group is to expand the scale and improve the core Competitiveness,based on such financing needs,the multiple characteristics of convertible bonds can help the group to obtain sufficient funds while reducing costs and optimizing capital structure.Using the comparative analysis method,this paper compares the relevant indicators reflecting the financial effect of GAC group with the industry average level,summarizes the financial effect brought by the issuance of convertible bonds,and obtains the enlightenment and reference for similar enterprises.This paper holds that GAC group’s use of convertible bonds for financing has produced a more positive market reaction in the capital market,and the company’s stock price has increased under its influence,and it has improved the company’s profitability to a certain extent,making its capital structure more healthy,and the funds can be used reasonably and efficiently.Therefore,enterprises in the same industry can learn from the experience of GAC group when making refinancing decisions.However,because GAC group is only an example,it is not universal,and GAC debt conversion has not been fully converted into shares,so the analysis of this paper also has some limitations.