JY Company’s Convertible Bond Financing Performance

General Secretary Xi Jinping put forward an aim that we need acelerating the Creation of A New Development Pattern and pursuing High-Quality Development,to build a modern socialist country in all respects,we must,first and foremost,pursue high-quality development at the report to the 20 th National Congress of the Communist Party of China.The report reveals the center of gravity and direction of our economic development in the next stage,which is to give full play to the advantages of the capital market to help our economy to transform to a high quality.To support economic transformation and achieve high-quality development as early as possible,the CSRC has continuously relaxed refinancing restrictions for listed companies.In this context,convertible bond financing,which has the advantages of low cost financing,can reduce the conflict of interest in the financing process,and has the characteristics of bond and equity,has become the focus of the market.Efficient financing can create new profit growth points for enterprises and provide impetus for their continuous development,while blind and inefficient financing can only lead to disorderly expansion of enterprises and increase financial risks.The relaxation of the policy means that a large number of listed companies obtain the qualification of issuing convertible bonds,so it is necessary to fully study the financing performance of listed convertible bonds,so as to provide reference for listed companies planning to issue convertible bonds.In view of this,this paper selects JY Company’s issuance of convertible bonds in 2017 as the case study object.To explore the financing motivation of JY Company issuing convertible bonds as a traditional Chinese medicine enterprise.From the perspectives of financing cost,stock price,operating performance,capital structure,shareholders’ equity and enterprise value,this paper applies event study method,entropy weight method,EVA evaluation method and other methods to analyze the financing performance of JY Company’s convertible bonds,and finds that:(1)JY’s issuance of convertible bonds aims to meet the capital needs of project construction and adjust the company’s capital structure at a lower financing cost;(2)JY Company’s convertible bonds achieved the goal of low-cost financing and adjusting the Company’s capital structure without significantly affecting shareholders’ equity;(3)JY Company’s long-term performance of convertible bond financing is good,and the investment and construction projects are available as scheduled,which promotes the growth of JY company’s profitability and growth capacity indicators;(4)The short-term performance of JY Company’s convertible bond financing is poor,and the market has poor expectations for the convertible bonds issued by JY Company;(5)The convertible bonds issued by JY Company were successfully issued and delisted with a conversion rate of 99.11%;Convertible bond financing can promote the growth of corporate value.Finally,the paper puts forward some suggestions to optimize the financing performance of convertible bonds of listed companies.