| With the issuance of new regulations on refinancing in 2017,equity refinancing is greatly restricted,and convertible bonds are gradually favored by listed companies.However,in view of the late start of China’s convertible bond market,and the lack of relevant systems,many listed companies and investors do not have a deep understanding of the convertible bond market,this paper tries to explore the problems existing in convertible bond financing by analyzing the economic consequences of Oppein’s issuance of convertible bonds.This paper mainly uses the method of combining literature research and case study.This paper sorts out the relevant literature from the aspects of issuing motivation,economic consequences,clause design and pricing of convertible bonds,and introduces the characteristics,institutional background changes and relevant theoretical basis of convertible bonds.This paper analyzes the financing of convertible bonds issued by Oppein as a case.Firstly,it introduces the general situation of Oppein,analyzes the motivation of issuing convertible bonds from the perspectives of enterprise development needs,low debt repayment pressure of convertible bonds and indirect equity financing,and introduces the specific process of issuing convertible bonds by Oppein.From the perspective of financing cost,financial performance and principalagent conflict,this paper analyzes the financing effect of the convertible bond issued by Oppein,and finds that its financing cost is high.The financial performance of the company was not improved during the duration,and the company’s performance rebounded after the completion of the stock transfer.It failed to effectively alleviate the conflict of interests between major shareholders and minority shareholders as well as creditors.By analyzing the factors influencing the financing effect of convertible bonds issued by Oppein,this paper draws the following conclusions: The unreasonable design of specific terms of Oppein convertible bonds induces the increase of financing costs of convertible bonds;There are some misunderstandings in the purpose of issuing convertible bonds,and the corporate governance function of convertible bonds is not brought into play.The related system of convertible bonds is not perfect,which provides conditions for major shareholders to encroach on the interests of small and medium investors.It also puts forward corresponding enlightenment and suggestions for issuers,regulatory authorities and investors to protect the rights and interests of small and medium investors and promote the healthy development of the convertible bond market.This paper provides a theoretical reference for regulatory authorities to improve the relevant system of convertible bonds,and has a certain enlightenment for listed companies to design the relevant provisions of convertible bonds. |
