Research On The Influence Of Convertible Bond Financing On Financial Performance Of GAC

With the issuance of new financing regulations in 2017,more and more listed companies issued convertible bonds for financing,but with the rise of convertible bonds financing boom,many listed companies blindly follow the trend and frequently have many problems.Therefore,the research on convertible bonds financing is of great significance to corporate financial performance.As a leading enterprise in the automobile manufacturing,GAC group has a typical successful case of convertible bond financing.This paper takes GAC group as a case company to carry on the research,uses event study method,principal component analysis method and grey relational analysis method to explore the influence of the convertible bond financing on financial performance of GAC group,it will provide some references for GAC group and even other companies in the automobile manufacturing when choosing convertible bonds financing.First of all,in order to clarify the current situation of convertible bonds issued by GAC group for financing and financial performance,this paper sorts out the case of convertible bond issued by GAC group for financing and introduces from three aspects:the process,content terms and motivation of issuing convertible bonds.On the basis,this paper analyses the status of GAC Convertible Bond from double characteristics of the convertible bonds,clarifies the status of financial performance from profitability,asset quality,debt risk and development potential,after that by analyzing the financial performance before and after changes of convertible bonds for financing,the positive impact of GAC Convertible Bond for financing was further clarified.Secondly,in order to further explore whether the convertible bond financing of GAC group promotes the improvement of the corporate financial performance and how the various indicators of convertible bond financing affect the financial performance,so event study method is adopted to analyze the market effect of the enterprise to measure the short-term financial performance of the enterprise.At the same time,principal component analysis method is used to comprehensively quantify the financial performance of enterprises from four aspects: profitability,asset quality,debt risk and development potential.Finally,the paper innovatively chooses grey correlation analysis method to study the relationship between dual characteristics of convertible bonds and financial performance,and makes a comprehensive analysis of the research results.Through the research on the relationship between the issuance of convertible bonds and corporate financial performance of GAC group,this paper finds that the issuance of convertible bonds has different results on financial performance of enterprises.According to the research results obtained,this paper puts forward some suggestions from the perspective of improving the financial performance of enterprises by issuing convertible bonds: rationally choosing the issuing time of convertible bonds,scientifically designing the terms of convertible bonds and improving the utilization efficiency of raised funds.