Chin, Sze Kim and Abdullah, Nur Adiana Hiau (2012) The effect of debt securities issuance towards equity market behavior in Malaysia (Kesan penerbitan sekuriti hutang terhadap kelakuan pasaran ekuiti di Malaysia). Jurnal Pengurusan, 36. pp. 45-58. ISSN 0127-2713

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Abstract

The study investigates the impact of debt securities issuance on the equity market behavior of the issuers.Event study results reveal that overall debt securities issuers experience an increase in equity return and a decrease in systematic risk, while total risk remains unchanged.The further examination of the 100 debt securities issuing companies finds significant differences between hybrid and non-hybrid debt securities issues. Hybrid debt securities experience a significant increase in equity return, decline in systematic risk and increase in total risk. Non-hybrid debt securities issues, however, are found to have no impact on equity market behavior.The findings of the study imply that the general decline in systematic risk for debt securities issuing companies could motivate the issuance of debt securities, particularly the hybrid type, and thus improve market liquidity. Further, non-hybrid debt securities may not be the appropriate alternative for sending a market signal as no impact on market behavior is found following the issuance.

Item Type:	Article
Uncontrolled Keywords:	Debt Securities; Equity Market Behavior; Hybrid Debt Securities; Non-Hybrid Debt Securities; Systematic Risks; Total Risks
Subjects:	H Social Sciences > HF Commerce > HF5601 Accounting
Divisions:	School of Economics, Finance & Banking
Depositing User:	Prof. Dr. Nur Adiana Hiau Abdullah
Date Deposited:	08 Sep 2015 01:17
Last Modified:	20 Apr 2016 01:49
URI:	https://repo.uum.edu.my/id/eprint/15417

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