Research On The Impact Of Convertible Bond Financing On Corporate Performance

In recent years,new policies have been issued in the logistics industry to promote enterprises to im prove the industrial structure and improve production and operation efficiency.The occurrence of the ep idemic also puts forward higher requirements for the transportation capacity of logistics enterprises.The choice of financing mode is very important for the development of an enterprise.Without strictly distin guishing between long-term and short-term financing modes,mixed financing are common financing m odes of enterprises.According to the priority financing theory,the financing order of enterprises is gene rally from inside to outside,from debt to stock.When the enterprise develops to a certain stage(such as the transition from import period to growth period),the internal retention of the enterprise can not meet the further development of the enterprise.Compared with equity financing,the biggest feature of debt fi nancing is that it can avoid equity dispersion and raise funds in the short term.Corresponding to this is t he pressure to pay high interest and repay principal when due.Therefore,how to choose financing tools is a big problem for enterprises.This paper mainly selects the literature research method to sort out,uses the case study method to s tudy the event of the case company issuing convertible bonds,and integrates the relevant materials relea sed.Then use the event research method and comparative analysis method to study the impact of SF hol dings issuing convertible bonds on the company’stock price,that is financial performance.Based on the data,the qualitative and quantitative methods are used for analysis.Firstly,this paper studies the basic terms of SF convertible bonds,focusing on the Financing Motivation and performance impact of S F holdings convertible bonds.Using the financing demand theory to explain the procession of this enter prise’s convertible bond financing,and on this basis,analyze the changes in enterprise performan ce caused by the issuance of convertible bonds.It is found that after the announcement of convertible bo nds,the company’s shares fluctuate greatly,and the cumulative excess return corresponding to thi s period of time is negative,indicating that investors are still worried about the financing behavior of the company’s issuance of convertible bonds.Then it makes a comparative analysis of the company’s equity structure before and after the issuance of convertible bonds.It is found that the top three shareholders have not changed,but four commercial banks rank among the top ten shareholders after th e success of Shunfeng’s debt to equity conversion,which also indicates that the issuing company tends to introduce high-quality investors such as commercial banks and financial institutions that can no t buy shares by this way of financing.In the part of financial performance analysis,this paper selects the financial indicators of SF holdings to compare the capital structure,solvency,operating capacity and pro fitability.Four companies are selected here for industry comparison.Industry companies are whether th ey are listed,the size of assets and the development direction of enterprises are similar to the company.In order to improve comparability,weighted values are used in the calculation of industry values.It is found that compared with the industry weighted value,the asset liability ratio of SF holdings is highe r than the industry value all the year round,which is also corresponding to the financing method of conv ertible bonds.At the same time,through industry comparison,the impact of the issuance of SF converti ble bonds on the financial performance of the enterprise is generally positive,but it is not obvious.As th e raised funds are successively invested in the corresponding projects,the operating efficiency of the ent erprise will be further improved.The logistics industry often adopts debt financing.The purpose of this paper is to provide reference for companies preparing to use convertible bond financing and seek a varie ty of possible financing methods for enterprises.