Research And Factor Analysis On The Announcement Effect Of Corporate Bond Issuance On The Stock Price Of Listed Companies In China

Economists at home and abroad have long been interested in understanding the trade-offs between various financing decisions,namely the optimal capital structure of firms,and the impact of these choices on securities markets.American economists Modigliani and Miller who won the Nobel Prize in Economics put forward in their MM theorem that under the premise of ideal market conditions,the worth of the company has nothing to do with its financing model.However,more corporate finance theories are not based on ideal markets.The results show that the company’s financing model has an important impact on the company’s market value.Specifically,for bond issuance,some theoretical studies predict that the market will react positively on the announcement date,while some theoretical studies predict that the market will react negatively on the announcement date.This article mainly discusses the following matters: is the impact of corporate bonds on the stock price of listed companies positive or negative? Do the issuance of different types of corporate bonds have the same effect on the stock price of listed companies? Which factor has the greatest influence of listed companies on stock prices? What is the trend of listed companies choosing corporate bonds?Firstly,based on the motives of the corporate bonds releasing by the listed enterprise in China,the relevant theoretical analysis is carried out on the motives,and on this basis,the impact of the issuance of corporate bonds on the company’s value is further analyzed.With the reform and opening up,capital market in China has developed rapidly compared to western capital markets.The preference for equity finance has become a fundamental feature of Capital Markets Finance in my country.However,with the fast development of China’s bond market,debt financing become one of the key leading investment and financing methods for Chinese listed companies.Secondly,according to in-depth study of the market announcement effect of Chinese listed corporate bond issuance,it further examines the impact of corporate bond issuance on the company’s market value during the issuance process.Based on the 10 trading days before and after the announcement date,this paper studies the total sample of corporate bond issuance,as well as three sub-samples of corporate bonds,convertible bonds and green bonds.The research results show that the announcement effect caused by the issuance of corporate bonds is negative in the total sample of corporate bonds and the three sub-samples of corporate bonds,convertible bonds and green bonds.The most significant negative effect.Third,this paper explores the special relationship between different types of corporate bond financing strategies and corporate attributes,and then understands the development trend of Chinese listed companies choosing to use corporate bonds for financing.The actual research results show that five variables,such as company scale,issuance scale,leverage,total asset return rate and book-to-market value ratio,have a significant impact on debt financing of Chinese enterprises.And according to different samples,the effect of these variables on different samples is compared and analyzed,and from this,we can understand the trend of my country’s listed companies choosing corporate bond financing.Fourth,The current work is based on theoretical analysis and tested by empirical research.The conclusion has certain implications for both regulators and listed companies.