The Pricing of New Convertible Bond Issues

1984 ◽  
Vol 13 (2) ◽  
pp. 31 ◽  
Author(s):  
M. Wayne Marr ◽  
G. Rodney Thompson
Keyword(s):  
Convertible Bond ◽  
Bond Issues

Convertible Bond Issues: Evidence from Security Markets

1995 ◽  
Vol 30 (4) ◽  
pp. 781-807 ◽  
Author(s):  
Dileep R. Mehta ◽  
A. Qayyum Khan
Keyword(s):  
Convertible Bond ◽  
Security Markets ◽  
Bond Issues

The Relationship between European Convertible Bond Issues and Corporate Governance: A Study of Electronics Companies in Taiwan

2009 ◽  
Vol 12 (02) ◽  
pp. 309-359 ◽  
Author(s):  
Jen-Hung Huang ◽  
Hyley Huang ◽  
Cheng-Few Lee
Keyword(s):  
Corporate Governance ◽  
Empirical Study ◽  
Market Value ◽  
Convertible Bond ◽  
Debt Ratio ◽  
Publicly Traded ◽  
Bond Issues ◽  
The Relationship

The purpose of this paper is to study the relationship between European convertible bond issues and corporate governance. After reviewing the regulation of Taiwan's ECB issues, we use the data from publicly traded electronics stocks from Taiwan to perform the empirical study. We found that the larger the company's ECB issue size, the higher the premium at the time of the ECB issue. In addition, we also found that the higher the company debt ratio, the lower the ECB issue premium. Finally, we found that the larger the company market value, the larger the size of the ECB issue.

scholarly journals Factors Affecting The Equity Price Impacts Of Convertible Bonds

2011 ◽  
Vol 8 (4) ◽  
pp. 79 ◽  
Author(s):  
Bruce R. Kohlman ◽  
Robert C. Radcliffe
Keyword(s):  
Stock Returns ◽  
Stock Price ◽  
Convertible Bonds ◽  
Equity Returns ◽  
Convertible Bond ◽  
Factors Affecting ◽  
Price Impacts ◽  
Bond Issues ◽  
Abnormal Stock Returns ◽  
Equity Price

This study examines abnormal stock returns associated with both the date a convertible bond issue is announced and the date it is sold. Results suggest the negative stock price effects observed I this and previous studies are due to the equity component inherent in convertible bonds, and an easily observed measure of that equity component is offered. In addition, results suggest that convertible bond issues sold by firms with previously issued outstanding convertibles are met with larger negative abnormal equity returns.

scholarly journals The Announcement Effect of Junk Bond Issues: an Analysis of the 1976-1989 Period

2020 ◽  
Vol 8 (2) ◽  
pp. 42
Author(s):  
Augusto Castillo R.
Keyword(s):  
Stock Prices ◽  
Explanatory Power ◽  
Relative Size ◽  
Abnormal Returns ◽  
Convertible Bond ◽  
Cross Sectional ◽  
Equity Issues ◽  
Bond Issues ◽  
Investment Grade ◽  
The Impact

This paper analyzes the impact of corporate junk bond offering announcements on stock prices for a sample of 680 issues of below investment grade bonds, during the 1976-1989 period. The sample shows a -1.0% cumulative abnormal return (CAR) for a two day event window period, and the zero CAR hypothesis is rejected with 99% confidence. The cumulative abnormal returns are negative and significant for combined announcements of bond and equity issues (CAR of -2.10%), and for announcements of convertible bond issues (CAR of -1.24%). Announcements of issues of straight bonds (CAR of -0.24%) are not significantly different from zero. Differences in CARs are observed across subsamples formed on the basis of size of the issuer, relative size of the issue, rating of the issue, name of the underwriter, market value of the issuer, and year of issue, but these variables are not significant when used in cross sectional regressions. The only variables with some explanatory power in those regressions are the ones indicating type of the issue, recession periods, and the dummy used to identify announcements made in 1976 (the first year junk bond issues were allowed).

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