Announcements Effect of Corporate Bond Issuance and its Determinants

Chin, Sze Kim and Abdullah, Nur Adiana Hiau (2013) Announcements Effect of Corporate Bond Issuance and its Determinants. Contemporary Economics, 7 (1). pp. 5-18. ISSN 2084-0845

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Official URL: http://www.ce.vizja.pl/en/issues/volume/7/issue/1

Abstract

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.

Item Type: Article
Uncontrolled Keywords: bond, equity market behavior, event study
Subjects: H Social Sciences > HB Economic Theory
Divisions: Faculty of Law, Arts and Social Sciences > School of Business
Depositing User: Unnamed user with email masilah.mansor@newinti.edu.my
Date Deposited: 27 Jan 2016 08:24
Last Modified: 06 Oct 2016 05:48
URI: http://eprints.intimal.edu.my/id/eprint/69

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