A Study On The Impact Of Convertible And Redeemable Preferred Stock Financing On Company Value ——Taking Xiaomi Group As An Example

The growth of the economic level and the process of social transformation are accelerating continuously,driving the progress of social civilization.For enterprises,financing methods are becoming more and more diversified.Traditional financing methods face many challenges,so many complicated and innovative financing methods have emerged.Preference stocks appeared relatively late in China,and are a relatively new financing method for domestic enterprises,and have developed rapidly in recent years.With the continuous development of preferred stocks,many preferred stocks with new attributes have been derived,such as the "convertible and redeemable preferred stocks" issued by Xiaomi.Due to their special nature,they are classified as liabilities in accounting treatment.The significant differences also cause the research conclusions of this particular preferred stock in all aspects to be inconsistent with the general conclusions formed by existing research.At the same time,as more and more companies choose to issue convertible redeemable preferred stocks for financing,research on this particular class of preferred stocks becomes necessary.This article selects the representative Xiaomi Group among them,starting from the characteristics of its preference shares,analyzes the reasons for its preference shares issuance,and explores the impact of its characteristics on the value of the company.This article selects Xiaomi Group.Its preferred shares are financed by the issue of convertible redeemable preferred shares.When Xiaomi Group is listed in Hong Kong,the results of its preferred shares are measured differently according to different accounting standards,causing investors and academia to It is highly concerned,so the case study with Xiaomi Group is representative.Through a case study,this article starts with the introduction of the evolution of the preferred stock's origin and issuance method.It compares and analyzes that the preferred stock financing method has a positive effect on broadening the financing method of high-tech startups and improving financing efficiency.This article deeply analyzes the reasons for its issuance of such preferred stocks.On this basis,it comparatively analyzes the cost of financing of preferred stocks,Scale and efficiency have great advantages.Based on the life cycle theory,the company analyzed the valuation and operating performance of the convertible redeemable preferred shares before and after issuing convertible redeemable preferred shares based on the life cycle theory.Has a positive impact on corporate value.Finally,summarize the experience of Xiaomi Group in issuing convertible redeemable preferred stocks.In the context of the science and technology board introduced by the party and the country's ambitious market economic reform,high-tech startups can learn from the financing experience of Xiaomi Group and overcome financing difficulties.Enhance corporate vitality.