The effect of debt securities issuance towards equity market behavior in Malaysia
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 exa...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Universiti Kebangsaan Malaysia
2012
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| Online Access: | http://eprints.intimal.edu.my/1002/ http://eprints.intimal.edu.my/1002/1/The%20effect%20of%20debt%20securities%20issuance%20towards%20equity%20market%20behavior%20in%20Malaysia.pdf |
| _version_ | 1848766618684882944 |
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| author | Chin, Sze Kim* Nur Adiana, Hiau Abdullah |
| author_facet | Chin, Sze Kim* Nur Adiana, Hiau Abdullah |
| author_sort | Chin, Sze Kim* |
| building | INTI Institutional Repository |
| collection | Online Access |
| description | 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. |
| first_indexed | 2025-11-14T11:54:01Z |
| format | Article |
| id | intimal-1002 |
| institution | INTI International University |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T11:54:01Z |
| publishDate | 2012 |
| publisher | Universiti Kebangsaan Malaysia |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | intimal-10022017-11-30T06:49:42Z http://eprints.intimal.edu.my/1002/ The effect of debt securities issuance towards equity market behavior in Malaysia Chin, Sze Kim* Nur Adiana, Hiau Abdullah HG Finance 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. Universiti Kebangsaan Malaysia 2012 Article PeerReviewed text en http://eprints.intimal.edu.my/1002/1/The%20effect%20of%20debt%20securities%20issuance%20towards%20equity%20market%20behavior%20in%20Malaysia.pdf Chin, Sze Kim* and Nur Adiana, Hiau Abdullah (2012) The effect of debt securities issuance towards equity market behavior in Malaysia. Jurnal Pengurusan, 36. pp. 45-58. ISSN 0127-2713 |
| spellingShingle | HG Finance Chin, Sze Kim* Nur Adiana, Hiau Abdullah The effect of debt securities issuance towards equity market behavior in Malaysia |
| title | The effect of debt securities issuance towards equity market behavior in Malaysia |
| title_full | The effect of debt securities issuance towards equity market behavior in Malaysia |
| title_fullStr | The effect of debt securities issuance towards equity market behavior in Malaysia |
| title_full_unstemmed | The effect of debt securities issuance towards equity market behavior in Malaysia |
| title_short | The effect of debt securities issuance towards equity market behavior in Malaysia |
| title_sort | effect of debt securities issuance towards equity market behavior in malaysia |
| topic | HG Finance |
| url | http://eprints.intimal.edu.my/1002/ http://eprints.intimal.edu.my/1002/1/The%20effect%20of%20debt%20securities%20issuance%20towards%20equity%20market%20behavior%20in%20Malaysia.pdf |