| Exchangeable bond is a new type of hybrid bond,which not only owns benefits of bonds,but also comes with stock call option,allowing investors to exchange shares within a specified date,which is very popular in many aspects of the market.In addition,the government is also improving its policies and regulations in order to boost the exchangeable bond market.Therefore,it is necessary to study exchangeable bonds.However,the current has some lack to evaluate its real strength of the buyer and seller of exchangeable bonds,in the case of don’t understand this kind of new bonds follow blindly,ignoring the company’s strategic planning,causing the economic issues,there are some buyers and sellers in order to obtain additional revenue,by playing "combination" approach to circumvent the supervision of the market.Accordingly,it is practically vital to discuss the causes and economic consequences of exchangeable bonds’ issuance.This paper starts from the perspective of issuer with the combination of bibliographic research method and event study method.And with the main use of financial index method and case study method to make analyses on the event of Shandong High-speed Group’s application of exchangeable bonds to implement financing.Firstly,the paper takes the lead in introducing the meaning and importance,and then classifies correlative home and abroad literature from the two aspects of the issuing motivation and economic consequences of exchangeable bonds,and clarifies the theoretical basis of exchangeable bonds.Then,Shandong High-speed Group is listed as the research object,the industry background of its investigation,and the issuance of the subject and the underlying stock of the operating situation,specifically presents the whole process of "17 Mountain High EB" issuance.Then,through the comprehensive expound on the terms of issuance,the financial status of the issuer and the selection of financing mode,it is found that the motivation of the issuer to issue bonds is mainly to adjust the debt structure,replenish the working capital and reduce the financial cost.Afterwards,it puts an emphasis on the analysis of the influence of issuing exchangeable bonds’ economic results,examines the short-term impact of the issuance of bonds on the capital market through the event study method,and studies the financial effect and capital cost by using the financial index method,and comes to next results: The issuance of exchangeable bonds will help Shandong High-speed Group reduce the cost of capital acquisition,improve the debt maturity structure,enhance debt paying ability,ease the pressure of working capital,and produce positive but temporary effects on the capital market.Finally,the results of this paper are integrated and corresponding suggestions are put forward :（1）Choose a favorable release time.Enterprises should identify specific capital operation nodes,have a keen perception of relevant laws and regulations,but also can’t ignore the overall economic environment and stock market trends.（2）Formulate reasonable issuance terms.Designing the terms of issuing bonds by reasonably weighing their own benefits and risks can reduce the possibility of failure in issuing bonds.（3）Perfect information disclosure system.Enterprises should truthfully and timely release information to avoid asymmetric information and create a positive investment environment.By exploring the issuing motivation and economic consequences of "17Mountains High EB" bonds issued by Shandong High-speed Group,it can provide experience guidance for other enterprises to issue exchangeable bonds,and help enrich the practical research cases of exchangeable bonds in China. |
