Research on the effect of issuing convertible bonds from the perspective of ownership structure -- Evidence from Listed Companies in Shanghai and Shenzhen

Abstract

Due to the rapid increase of enterprise scale, the traditional financing methods can no longer meet the needs of enterprises. As a financing method with both equity and debt, the flexibility of convertible bonds is favored by enterprises. Especially in 2017, China's supervision on the financing method of private placement of shares became stricter, and some companies chose convertible bonds for financing. This paper takes the ownership structure as the starting point, takes the listed companies in Shanghai and Shenzhen as the research object, and uses the regression analysis method to test the relationship between convertible bond financing, ownership structure and enterprise performance. It is found that convertible bond financing will reduce the performance level of enterprises, and the ownership concentration strengthens the negative relationship.