The pricing of convertible debt offerings

被引：11
|
作者：
Kang, JK
Lee, YW
机构：
[1] UNIV RHODE ISL,COLL BUSINESS ADM,KINGSTON,RI 02881
[2] UNIV CALIF RIVERSIDE,A GARY ANDERSON GRAD SCH MANAGEMENT,RIVERSIDE,CA 92521
来源：
JOURNAL OF FINANCIAL ECONOMICS | 1996年 / 41卷 / 02期
关键词：
convertible debt offerings; underpricing; estimation risk;
D O I：
10.1016/0304-405X(95)00864-B
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
We present the first empirical evidence on the pricing of convertible debt offerings. Using a sample of 91 convertible debt offerings from the period 1988-1992, we show a significant mean initial excess return of 1.11%. Our underpricing result is invariant to zero/nonzero coupons, maturity, issue size, or bond ratings. Further analysis reveals that various types of risk inherent in the new convertible issues are useful in explaining the cross-sectional variation in the initial excess returns. We offer an explanation for our results based on the arguments of the differential information model.
引用
收藏
页码：231 / 248
页数：18
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