• Business
  • Published 2011

Convertible Bonds Issuing and Protection of Major Shareholders' Interests——A Case Study of Gome Electrical Appliances Holding Ltd.

@inproceedings{Gengbin2011ConvertibleBI,
  title={Convertible Bonds Issuing and Protection of Major Shareholders' Interests——A Case Study of Gome Electrical Appliances Holding Ltd.},
  author={Xu Geng-bin},
  year={2011}
}
When major shareholders' shareholding ratio is not at a controlling position,the issuing of convertible bonds will make major shareholders' shareholding ratio decline,and damage their interests.By the backdoor equity financing theory,the article analyzes Gome's behavior of issuing convertible bonds.It's found that the issuing of convertible bonds not only worsens the financial condition,but also dilutes the shareholding ratio of major shareholders,thus damages their interests.