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Do convertible bond issuances increase the firm value in China? – Evidence from domestic and offshore issuances

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  • Garg, Vipul Kumar
  • Subramaniam, Sowmya

Abstract

This study examines the relationship between convertible bond issuances and firm value in China, distinguishing between domestic and offshore issuances. The study found compelling evidence that convertible issuances enhance the firm value. While offshore convertible bond issuance positively impacts firm value, its effect is less in comparison with domestic issuances. The issuance of convertible bonds by firms with higher liquidity has a significant impact on firm value.

Suggested Citation

  • Garg, Vipul Kumar & Subramaniam, Sowmya, 2025. "Do convertible bond issuances increase the firm value in China? – Evidence from domestic and offshore issuances," Finance Research Letters, Elsevier, vol. 76(C).
    • Handle: RePEc:eee:finlet:v:76:y:2025:i:c:s1544612325002533
    DOI: 10.1016/j.frl.2025.106989
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    More about this item

    Keywords

    Convertible bonds; Firm value; China; Offshore issuances; Bond market;
    All these keywords.

    JEL classification:

    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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