Research On The Motivation And Effect Of Hainan Airlines' Perpetual Bond Financin

In 2013,perpetual bonds first appeared in the Chinese market,perpetual bonds have the dual characteristics of "bonds" and "shares",generally recognized as equity instruments.It is a bond without a fixed maturity date,the issuer can decide whether to redeem it at its own discretion,but it is also accompanied by some special provisions such as the interest rate jump mechanism.Perpetual bonds can optimize the financial statements and capital structure of enterprises to a certain extent and reduce the asset-liability ratio while obtaining funds.Due to their unique nature,perpetual bonds can help enterprises that would otherwise only raise funds through a single channel to obtain more funds without changing their equity structure.Hainan Airlines issued two perpetual bonds in 2015 and 2016,and Hainan Airlines obtained a large amount of funds after the perpetual bond financing,and the short-term debt repayment pressure was greatly alleviated,but at the same time,the perpetual bond financing also brought some financial and credit risks to Hainan Airlines.Therefore,studying the case of Hainan Airlines perpetual bond financing is of great help to the effect and risk analysis brought by perpetual bond financing to enterprises,and at the same time provides some suggestions for enterprises preparing to carry out perpetual bond financing.This article first explains the background and importance of the research,summarizes the domestic and foreign literature on the impact of perpetual corporate bond issuance,ranks the causes of action,and then provides an overview of the impact of perpetual corporate bond issuance,the effects and the risks brought about,and then presents the content and research methods of this document.Then,the concept of perpetual bond is basically defined,and the advantages and characteristics of perpetual bond financing are summarized through the comparison with ordinary debt financing and equity financing,and the relevant theories are explained.After that,this paper first summarizes Hainan Airlines’ own development status and financing status,and then introduces and analyzes its perpetual bond financing plan.This paper focuses on the external and internal motives of Hainan Airlines’ perpetual bond financing,the effects of market reaction and finance after financing,and the risks brought by it,and analyzes the announcement effect of Hainan Airlines’ perpetual bond financing through the event research method.Finally,this paper makes suggestions on issuers,investors and market supervision authorities,and provides practical suggestions on how issuers can use perpetual bond financing to promote the optimization of perpetual bond financing.