Wealth effects of convertible bond and convertible preference share issues: An empirical analysis of the UK market

被引：38
|
作者：
Abhyankar, A [1 ]
Dunning, A
机构：
[1] Univ Warwick, Warwick Business Sch, Coventry CV4 7AL, W Midlands, England
[2] Guardian Asset Management, London EC2M 3UU, England
来源：
JOURNAL OF BANKING & FINANCE | 1999年 / 23卷 / 07期
关键词：
convertible securities; convertible preferred stock; convertible capital bonds; shareholder wealth; UK firms;
D O I：
10.1016/S0378-4266(99)00002-3
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
We examine the wealth effects of the announcement of issues of different types of convertible securities by UK firms and find significant negative effects on shareholder wealth. We however, also find that when the sample is partitioned by method of issue, privately placed convertible bonds, in contrast to previous research, exhibit a negative impact on firm wealth. Further, we also find negative wealth effects for firms that issue convertible securities to refinance previous debt or finance specific acquisitions. However announcements of convertible bond issues, for the purpose of financing capital expenditure schemes, show significant positive wealth effects. Finally, we find mixed support for testable predictions of the main theoretical models relating cross-sectional firm characteristics of convertible bond issuers to abnormal returns. (C) 1999 Published by Elsevier Science B.V. All rights reserved.
引用
收藏
页码：1043 / 1065
页数：23
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