Research On The Causes,Costs And Economic Consequences Of Convertible Bond Issuance

With the rapid development of China's capital market and the rapid change of the financing environment,the refinancing methods of listed companies in China have undergone a great variety of changes from rights offering to additional issuance and then to ordinary bonds.In the process of gradually improving the financing methods,convertible bonds emerge at the right moment.Different from the traditional financing methods,convertible bonds have both the characteristics of securities and equity.This financing method combining debt and equity has brought a breakthrough development to the financing market in China,which is highly favored by the market and becomes a popular way for listed enterprises to seek for refinancing.In the process of the rise of convertible bonds,there is more and more discussion about them in the market,and some problems in the issuance process are more and more worth studying.As an industry closely related to our life,the media industry of radio and television is closely related to China's cultural industry.On the refinancing of convertible bonds issued by listed companies,this paper selects the event with the largest and most representative issuance scale in the broadcasting and television media industry up to the year of issuance,and makes a specific analysis on the issuance process of convertible bonds by geely media.The content of this paper can be divided into six parts,the first part: introduction.Firstly,the development background and characteristics of convertible bonds are summarized.Then,the research significance and purpose of this paper are expounded.The framework and analysis methods of this paper are introduced.Part two:theoretical basis and research status.This paper mainly introduces the theory of signal transmission and financing priority in the research of convertible bonds,which provides the theoretical basis for the following research.Part three: case introduction.This paper discusses the background of geely media and its industry,introduces the issuance process of geely media's issuance of convertible bonds in a systematic way by combining the issuance method,scale and terms of convertible bonds.The fourth part: the analysis of the motivation of the issuance of convertible bonds by JVS media.In this paper,the author mainly analyzes the reasons for the release of geely media based on its own development needs from the following aspects: optimizing capital structure,obtaining equity returns,reducing reverse cost and improving governance structure.The fifth part: the economic effect analysis after issuing convertible bonds.In this part,the author mainly analyzes and summarizes the financing cost,economic consequence,long-term and short-term market reaction and the impact on shareholders' equity in the whole process of issuing convertible bonds.The sixth part:the conclusion analysis and enlightenment of the case.Combined with the above whole process to analyze and summarize the conclusion of the case and provide the following investors with advice in terms of the provision setting process,and summarize the shortcomings and prospects of this paper.This article through to the target media in convertible bonds before and after the change in the comparison and analysis of financial indicators,it can be seen that the convertible bonds in general to enterprise's financial performance,capital structure and market reaction has a positive effect,lead to the economic consequences are enterprise capital scale has expanded,making the short term there is obvious improvement in the profitability of the company.