Study on the Motive of Issuing Convertible Bonds

In the international academic circles,there are such theories on convertible bonds including the Asset Substitution Hypothesis,the Estimation Risk Hypothesis,the Back Door Equity Financing Hypothesis,the Sequential-Financing Hypothesis.In China,few researches have been done in this area.It proves very important to study the motive of issuing convertible bonds,which may mean much to the issuing companies and also the support of developing convertible bonds.