Announcements effect of corporate bond issuance and its determinants

Sze Kim Chin & Nur Adiana Hiau Abdullah

This study aims to investigate the effect of bond issuance announcements and to determine the company characteristics that could influence this effect. The findings reveal positive cumulative average abnormal returns following bond issuances, indicating that the market considers bond offers to be favorable news. Nevertheless, cross-sectional regression analysis shows an insignificant relation of company profitability, growth opportunities, asset tangibility, size, and managerial ownership with cumulative abnormal returns. The results confirm that there is a signaling effect of bond issuance announcements and that this effect is not affected by company characteristics.

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Year of publication:	2013
Authors:	Chin, Sze Kim ; Abdullah, Nur Adiana Hiau
Published in:	Contemporary economics. - Warsaw : University of Finance and Management, ISSN 2300-8814, ZDB-ID 2605668-9. - Vol. 7.2013, 1 (15.3.), p. 5-18
Subject:	bond \| equity market behavior \| event study \| Unternehmensanleihe \| Corporate bond \| Ankündigungseffekt \| Announcement effect \| Börsenkurs \| Share price \| Ereignisstudie \| Event study \| Börsengang \| Initial public offering \| Aktienmarkt \| Stock market

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Extent:	graph. Darst.
Type of publication:	Article
Type of publication (narrower categories):	Aufsatz in Zeitschrift ; Article in journal
Language:	English
Notes:	Systemvoraussetzungen: Acrobat Reader
Other identifiers:	10.5709/ce.1897-9254.70 [DOI] hdl:10419/105362 [Handle]
Classification:	G11 - Portfolio Choice ; G32 - Financing Policy; Capital and Ownership Structure ; G14 - Information and Market Efficiency; Event Studies
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10009770381