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| The Impacts of Convertible Bond Financing on the Value of Chinese Listed Companies |
| CHENG Datao |
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Abstract Convertible bonds have two functions of equity financing and debt financing. These functions will affect the investors' decisions on the timing and quantity of shares transfer and these decisions will have different influences on the company value. This paper establishes an analysis model to examine the impacts of convertible bond issues on company value. The sample consists of Chinese listed companies which had issued convertible bonds during the period of 1998-2014. We find that: After convertible bond issues, company value will decrease due to the change of its debt-paying ability; The proportion of state ownership will affect the operational performance of an agent, hence influencing the company value; Within bond duration, the changes of company value between growth and value companies are not significantly different. This study contribute to the corporate governance literature with valuable empirical analysis and extends the field by utilizing agency theory to analyze the impacts of convertible bonds financing on company value.
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Received: 28 March 2016
Published: 15 August 2016
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Corresponding Authors:
CHENG Datao
E-mail: zjsucdt@163.com
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2016, Vol. 
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