Research On Financing Risks Of Fiberhome Telecommunication Convertible Bond

With the rapid development of China’s economy and the government’s strong support for science and technology,many companies have developed their core technologies,which require a lot of capital integration.As a financing tool,the issuance of convertible bonds not only has its own low-cost issuance advantages,but also complies with the new regulations,so convertible bonds have become the financing choice of many companies,Fiberhome Telecommunication is one of them.However,convertible bonds bring financial support to enterprises,but also bring corresponding risks.If the enterprise itself has financial risks while ignoring external market risks,and blindly follows the trend,does not reasonably design the issuance terms,determine the timing of the issuance,etc.,it may not reach the expected stock price,causing it to fail to convert shares,and eventually lead to a situation of no profit but loss.Therefore,studying the financing risks brought by the issuance of convertible bonds is of great significance to the operation and development of enterprises.As the research object of this paper,Fiberhome is a representative enterprise in the electronic equipment manufacturing industry.The whole article focuses on the convertible bonds issued by Fiberhome in December,2019 and identifies the financing risks brought by Fiberhome when issuing convertible bonds from three perspectives: issuance risk,conversion risk and principal and inter est payment risk.Then,the weight of each influencing factor under these three risks is calculated by the entropy weight method,and the TOPSIS comprehensive evaluation method is used to evaluate it,and the result is that the convertible bonds issued by Fiberhome have greater financing risks.Finally,according to the results of the risk evaluation,Fiberhome Telecommunication made suggestions for the issuance of convertible bonds.This paper argues that while improving the solvency of enterprises and cas h flow velocity,Fiberhome Telecommunication should choose a favorable issuance time based on the actual purpose of issuing convertible bonds,and actively respond to changes in market interest rates and stock prices to control risks.The suggestions made in this paper enable enterprises to better avoid risks when issuing convertible bonds again in the future and seize this opportunity to achieve the financing purpose of enterprises,also provide a certain reference for other enterprises to issue convertible bonds.