Research On The Impact Of Convertible Bond Issuance On Total Factor Productivity Of Firms

As a financing method of the capital market,convertible bond financing has received extensive attention and favor from all walks of life because of its late start in China and the construction and management mechanism of relevant systems,but with its dual characteristics of bonds and stocks.In recent years,China has continuously introduced policies related to bond issuance,actively promoted listed companies to raise funds through multi-level capital markets to solve problems such as insufficient funds of enterprises,and convertible bonds with the dual nature of bonds and stocks came into being.Under the policy support of building a multi-level capital market,the development of China’s convertible bond market is in full swing,compared with before,the number of enterprises issuing convertible bonds has increased significantly,and listed companies can solve the capital problems required for enterprise development and innovation through the issuance of convertible bonds,and then more effectively improve the total factor productivity of listed companies.This paper aims to study the impact of convertible bond issuance on the total factor productivity of enterprises,and reveal the transmission path of convertible bond issuance through mechanism testing.Firstly,the impact of convertible bond issuance on total factor productivity of enterprises and its impact mechanism are analyzed theoretically.Secondly,based on the data of A-share listed companies in China from 2015 to 2019,the impact of convertible bond issuance on the total factor productivity of enterprises from the perspective of listed companies is explored by using the double difference model method.On this basis,the mechanism analysis of listed companies from two aspects: financing constraints and corporate governance is also carried out.Finally,through multiple heterogeneity analyses and robustness tests,the main content of this paper is tested to see whether it is general,and then policy suggestions related to the issuance of convertible bonds are put forward based on the above analysis.The empirical research results show that,first,the issuance of convertible bonds can significantly promote the total factor productivity of enterprises;Second,through the channel of enterprise financing constraints,the issuance of convertible bonds can promote the total factor productivity of enterprises.Enterprises with small financing constraints have promoted their total factor productivity by issuing convertible bonds.Third,through the channel of corporate governance,the issuance of convertible bonds can also promote the total factor productivity of enterprises.Corporate governance can start from different measurement methods of the first type of agency cost and the second type of agency cost,and in terms of corporate governance,it is mainly to promote the improvement of total factor productivity of enterprises by reducing the first type of agency cost.