Research On The Influence Of Gishi Media Convertible Bonds On Corporate Performance

With the revision of the refinancing regulations in 2017,the financing volume of convertible bonds in China surged and hit a new high in 2020.Convertible bonds are favored by many listed companies.While promoting the diversification of enterprise financing,reducing financing cost and improving financing flexibility,convertible bond financing will inevitably bring many influences on enterprise performance.However,due to the late start of convertible bonds in China,some listed companies ignore the impact of convertible bonds on corporate performance when issuing convertible bonds to take advantage of its low financing cost,and fail to put forward the issuance terms suitable for the company's own situation.As a result,the company's performance declines,financial performance declines,and even faces the risk of failure in stock conversion.At present,there are still few case studies on convertible bonds in China,so it is of practical significance to explore the impact of issuing convertible bonds on corporate performance.In order to study the impact of GISHI Media's issuance of convertible bonds on the performance of issuing companies,GISHI convertible bonds,a new round of convertible bonds issued by GISHI Media at the end of 2017,which had failed to convert shares,was selected as a case.First of all,it expounds the research and theory of convertible bonds by domestic and foreign scholars,and analyzes the financing necessity and the choice of financing methods of GISHI Media.Secondly,it traces the issuance process of GISHI convertible bonds and makes a specific analysis of the relevant terms.Then,the paper analyzes the market reaction after the issuance of GISHI convertible bonds and the wealth effect brought by the issuance of convertible bonds to shareholders by using event analysis.Using comparative analysis method,the financial performance of GISHI Media and the industry level are compared and analyzed to describe the influence of convertible bonds on performance;Combined with EVA comprehensive financial performance analysis method to evaluate its multidimensional performance,judge the impact on shareholder wealth;Through the current situation of share transfer briefly analyzed the impact on the ownership structure.According to the analysis,it is concluded that the market reaction of GISHI is a positive reaction,which brings a little wealth effect to shareholders in the short term.After issuing convertible bonds,the company's business performance declines and its debt paying ability weakens;Failure to effectively improve the company's capital structure;Failing to increase shareholder wealth after considering shareholder cost of capital;At the same time,the control right of the enterprise is maintained well.Finally,the paper gives some suggestions for issuing convertible bonds,including reasonable selection of issuing time,flexible setting of terms,reasonable use of funds and optimize market value management.The purpose of the convertible bond performance study certificate issued by GISHI Media is to provide reference for the related companies that intend to issue convertible bond financing and guide the enterprises to reasonably finance and avoid blindly following.