The Influence Of The Issuance Of Intco Convertible Bonds On The Company’s Operating Performance

On the basis of the rapid development of convertible bond market in China,enterprises are more and more willing to issue convertible bonds.Therefore,more and more enterprises choose to issue convertible bonds,and the number is also increasing.From the beginning of 2018 to the end of 2020,414 convertible bonds were newly issued in the market,with an average of 11.5convertible bonds issued each month.With around 160 issued in just one year in 2020 and growing every year,that’s a huge improvement for a market that also issued 113 convertible bonds until late 2012.This phenomenon shows that convertible bonds are more and more concerned by listed companies and private enterprises in my country’s market.This financing method of issuing convertible bonds has certain advantages over other financing,and also greatly enhances the enthusiasm of enterprises to issue convertible bonds.Issuing convertible bonds can also alleviate the problem of corporate financing difficulties to a certain extent.As a financing method of enterprises,it is of great significance to study the operating performance under the influence of issuing convertible bonds.This paper pays more attention to the selection of representative companies such as Intco Medical for analysis.As a leading enterprise in the medical industry,Intco Medical invests in protective gloves and other medical fields,so it needs a financing method with low risk and certain controllability.During the issuance of convertible bonds,the influence of the issuance of convertible bonds on enterprises is discussed according to the changes of market performance and corporate financial indicators.In the subsequent financing of convertible bonds,this paper provides decision-making basis for companies with similar operating conditions.The analysis of business performance in the research process is mainly divided into two aspects: one is business benefit,and the other is operator performance evaluation.Operational efficiency uses general financial performance evaluation methods to analyze changes in corporate financial indicators,such as capital structure and solvency.The operator’s performance evaluation is to use the economic value-added method to adjust,calculate and analyze the enterprise,and then disclose and analyze the market reaction after the issuance of the convertible bonds.By analyzing the overall performance of the enterprise,the impact of the issuance of convertible bonds on the business performance of the enterprise can be seen more intuitively as a whole.The results of the study show that the financing cost of convertible bond issuance is related to the development of the company,and the issuance of convertible bonds can improve the company’s solvency and performance.According to the above research,it is proposed that the design of the terms of convertible bond issuance should contact the enterprise itself,and then decide whether to issue convertible bonds and other relevant suggestions according to the company’s development status.It is expected to provide assistance to enterprises in the same industry and other enterprises with similar production conditions in the issuance of convertible bonds.