Announcements Effect of Corporate Bond Issuance and its Determinants

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 fa...

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Main Authors: Chin, Sze Kim, Abdullah, Nur Adiana Hiau
Format: Article
Language:English
Published: University of Finance and Management in Warsaw & Vizja Press&IT 2013
Subjects:
Online Access:http://eprints.intimal.edu.my/69/
http://eprints.intimal.edu.my/69/1/Announcements%20Effect%20of%20Corporate%20Bond%20Issuance%20and%20its%20Determinants.pdf
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author Chin, Sze Kim
Abdullah, Nur Adiana Hiau
author_facet Chin, Sze Kim
Abdullah, Nur Adiana Hiau
author_sort Chin, Sze Kim
building INTI Institutional Repository
collection Online Access
description 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.
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spelling intimal-692016-10-06T05:48:07Z http://eprints.intimal.edu.my/69/ Announcements Effect of Corporate Bond Issuance and its Determinants Chin, Sze Kim Abdullah, Nur Adiana Hiau HB Economic Theory 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. University of Finance and Management in Warsaw & Vizja Press&IT 2013 Article PeerReviewed text en http://eprints.intimal.edu.my/69/1/Announcements%20Effect%20of%20Corporate%20Bond%20Issuance%20and%20its%20Determinants.pdf 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 http://www.ce.vizja.pl/en/issues/volume/7/issue/1 10.5709/ce.1897-9254.70
spellingShingle HB Economic Theory
Chin, Sze Kim
Abdullah, Nur Adiana Hiau
Announcements Effect of Corporate Bond Issuance and its Determinants
title Announcements Effect of Corporate Bond Issuance and its Determinants
title_full Announcements Effect of Corporate Bond Issuance and its Determinants
title_fullStr Announcements Effect of Corporate Bond Issuance and its Determinants
title_full_unstemmed Announcements Effect of Corporate Bond Issuance and its Determinants
title_short Announcements Effect of Corporate Bond Issuance and its Determinants
title_sort announcements effect of corporate bond issuance and its determinants
topic HB Economic Theory
url http://eprints.intimal.edu.my/69/
http://eprints.intimal.edu.my/69/
http://eprints.intimal.edu.my/69/
http://eprints.intimal.edu.my/69/1/Announcements%20Effect%20of%20Corporate%20Bond%20Issuance%20and%20its%20Determinants.pdf