Research On The Issue Motivation,Pricing And Consequences Of Haier Zhijia Convertible Bonds

For enterprises,both expansion and business development cannot be separated from the support of sufficient and stable cash flow,and financing is an important way to obtain a relatively stable source of funds.At present,our country many enterprise financing problems,convertible bond has the dual characteristics of debt and equity,make up for the deficiency of the traditional financing tools,especially after the refinancing new rules issued by the CSRC,compared with other traditional financing ways,the issue of convertible bonds cost and risk is lower,more meet the needs of enterprises and market,its growth has appeared in a number and size,Ushered in a new round of development opportunities.In this paper,the Haier convertible bond issued at the end of 2018 by Haier Zhijia Co.,Ltd.(formerly Qingdao Haier Co.,Ltd.),a leading enterprise in the home appliance manufacturing industry,was selected as the case study object,and the case study method and event study method were comprehensively used to explore the issuing motivation,pricing and consequences of Haier’s convertible bond.According to the situation of Haier’s convertible bond raised funds and investment projects and the development strategy of Haier’s intellectuals,in-depth analysis of Haier’s convertible bond issuance motivation;B-S model is selected to calculate the value of the option part of Haier’s convertible bonds,and the specific data results show that the basic situation of Haier’s convertible bond pricing is more authoritative.Then,the event study method was used to analyze the market reaction of the issuance of Haier’s convertible bonds.According to the analysis results,the issuance of Haier’s convertible bonds had a positive market reaction,and the projects invested by the raised funds were more optimistic by investors.With financial data analysis haier finally turn debt issuance of consequences,from the liquidity and solvency,profitability and shareholder earnings,cash flow and enterprise value these aspects specific analysis,haier turn after issuance can effectively adjust the haier of home equity and debt structure,debt paying ability also got a boost,investors are more bullish on bonds to raise funds by haier,This further enhanced the confidence of investors,further improved the earnings per share of Haier Zhijia,improved the management efficiency and the ability to create cash flow,and also improved the enterprise value of Haier Zhijia after the issuance of Haier’s convertible bonds.According to the current economic situation changes,home appliance industry is facing upgrading transformation,haier think convertible bonds can get companies product upgrade and related investment funds,and further enhance the market share of haier,at the same time also can improve bond that mark the company haier haier enterprise value and core competitiveness of the home.This paper is expected to provide certain reference for enterprises in the household appliance industry and other industries that want to issue convertible bonds for financing,and learn from each other’s experience to jointly promote the healthy and stable development of China’s convertible bond market.