Abdullah, Nur Adiana Hiau and Kim, Chin Sze (2013) Announcements effect of corporate bond issuance and its determinants. Contemporary Economics, 7 (1). pp. 5-14. ISSN 1897-9254

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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 > HG Finance
Divisions:	School of Economics, Finance & Banking
Depositing User:	Prof. Dr. Nur Adiana Hiau Abdullah
Date Deposited:	08 Sep 2015 01:25
Last Modified:	14 Apr 2016 06:37
URI:	https://repo.uum.edu.my/id/eprint/15422

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