• Journal of Industrial Convergence
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• v.18 no.5
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• pp.1-13
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• 2020

The purpose of this study is to find out how much the investment effect of convertible bond(CB) is from the perspective of investors and to present efficient investment plans to investors. The research method is to investigate the coupon interest rate, maturity interest rate, conversion price, etc. for CBs. As a result of the study, it was analyzed that CB's investment efficiency was low because the conversion price excess days ratio was only about 1/4 of the conversion date. The conversion day yield was -6.3% and the maturity day yield was -5.2% on average. It was analyzed that the number of stocks with negative conversion day yield was 2.4 times higher than the number of positive stocks and 3.7 times higher than the number of positive stocks with a maturity day yield, so the expected return on equity conversion of CB was low.

• Journal of Service Research and Studies
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• v.10 no.4
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• pp.71-88
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• 2020

CB(Convertible bond) is mezzanine security that have the characteristics of bonds and stocks. From the perspective of investors, the purpose of the research is to empirically investigate the degree of investment efficiency of CB and to suggest efficient investment plans. The research method investigated the maturity interest rate, conversion price, and conversion date for CB, and then linked it with daily stock price fluctuations after the conversion date to determine the degree of investment efficiency and stock conversion effect of CB. As a result of the study, it was analyzed that the ratio of the conversion price exceeded days was only about 1/4 of the conversion date, so the investment efficiency was low. The conversion day yield was -6.3% on average and the maturity day yield was -5.2% on average, showing a minus return on average, which was calculated differently from investor expectations. It was analyzed that the number of stocks with a minus conversion day is 2.4 times greater than the number of plus stocks and 3.7 times more than the number of plus stocks with a minus maturity return, so the expected return on stock conversion of CB is low. The research contribution was derived from the problem that the expected rate of return of CB is not high, and it is that the investor's point of view when purchasing CB was established.