Convertible bond, whose holder has the right to convert it into shares in accordance with the agreed terms of the bond within a certain period, combines the common features of the bond and stock. Announcement effect of the securities, also known as wealth effect of the shareholder, is to investigate the influence of the major issuers on the company’s stock price. Because the nature of financial instruments is different, there are differences in issued announcement effect. Scholars’ study of the convertible bond from various countries also involves many aspects. The article gives the literature review on the issue of announcement effect and its influencing factors of target stocks. On the basis of summarizing the conclusions, this article also points out the studies’ shortcomings and deficiencies. We hope to be able to provide some inspiration for the development of the convertible bond market.
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