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

Vipul Kumar Garg and Sowmya Subramaniam

Finance Research Letters, 2025, vol. 76, issue C

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.

Keywords: Convertible bonds; Firm value; China; Offshore issuances; Bond market (search for similar items in EconPapers)
JEL-codes: G10 G12 G32 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:76:y:2025:i:c:s1544612325002533

DOI: 10.1016/j.frl.2025.106989

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