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The effect corporate bond issuance to the equity market and its determinants

Kim, Chin Sze and Abdullah, Nur Adiana Hiau (2011) The effect corporate bond issuance to the equity market and its determinants. In: 13th Malaysian Finance Association Conference , 10th-12th June 2011, Holiday Villa Beach Resort & Spa Langkawi, Kedah.

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The study aims to investigate the signaling effect of bond issuance in Malaysia and to determine the company characteristics that influence the effect. Findings of the study reveal positive cumulative average abnormal returns following bond issuance indicating that the market treat bond offers as favourable corporate news.On the other hand, the cross-sectional analysis found insignificant relation between company profitability, growth opportunities, asset tangibility, size and managerial ownership with cumulative abnormal returns of bond issuers. The results confirm the signaling effect of bond issuance but further reveal that the effect is not affected by company characteristics.

Item Type: Conference or Workshop Item (Paper)
Additional Information: Joinly organised by Asian Institute of Finance, Malaysian Finance Association & Universiti Kebangsaan Malaysia-GSB
Uncontrolled Keywords: corporate bond, equity market, signaling effect,determinants
Subjects: H Social Sciences > HG Finance
Divisions: School of Economics, Finance & Banking
Depositing User: Prof. Dr. Nur Adiana Hiau Abdullah
Date Deposited: 17 Nov 2011 06:38
Last Modified: 24 Apr 2016 04:04

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