Effects of Convertible Bond Financing -- Enterprise Value Analysis Based on EVA

DOI

10.2991/aebmr.k.201211.069How to use a DOI?

Keywords

Convertible bonds, EVA, corporation value

Abstract

In recent years, as convertible bonds have become the mainstream refinancing method for Chinese companies, the financing effect of convertible bonds is being paid more and more attention by corporate managers and investors. Among them, the impact of convertible bond financing on corporate value is the focus of research. This article uses the EVA index system to study the impact of East Money’s issuance of convertible bond financing on corporate value. Economic Value Added (EVA) is a new performance indicator and value analysis tool.The study found that East Money’s corporate value declined in the year when the convertible bonds were issued, and that the corporate value rose from the second year and achieved a substantial leap from negative to positive, indicating that the development of convertible bond financing in the short term Will reduce the value of the enterprise, and in the long run, the issue of convertible bond financing will enable the enterprise value to achieve leapfrog development.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Liying Huang
AU  - Zhiwei Rao
PY  - 2020
DA  - 2020/12/14
TI  - Effects of Convertible Bond Financing -- Enterprise Value Analysis Based on EVA
BT  - Proceedings of the Fifth International Conference on Economic and Business Management (FEBM 2020)
PB  - Atlantis Press
SP  - 405
EP  - 408
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.201211.069
DO  - 10.2991/aebmr.k.201211.069
ID  - Huang2020
ER  -