Event Title

Announcement effects of convertible debt: Which firm and market characteristics affect the magnitude of abnormal stock returns?

Presenter Information

Charles Madden, Colby CollegeFollow

Location

Diamond 341

Start Date

30-4-2015 2:00 PM

End Date

30-4-2015 3:25 PM

Project Type

Presentation

Description

This study examines the announcement effects of offering convertible debt using data from the US market from 2006 to 2015. Convertible debt has become a widely used mode of financing, especially for high-risk companies. It is important for both issuers and investors to understand how this financing option may affect the underlying equity of the issuing company, if at all. This paper includes the calculation of abnormal returns using event study methodology. The abnormal returns will be regressed against a number of potential firm and market characteristics to explore which factors affect the magnitude of the potential abnormal returns.

Faculty Sponsor

Andreas Waldkirch

Sponsoring Department

Colby College. Economics Dept.

CLAS Field of Study

Social Sciences

Event Website

http://www.colby.edu/clas

ID

1121

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Apr 30th, 2:00 PM Apr 30th, 3:25 PM

Announcement effects of convertible debt: Which firm and market characteristics affect the magnitude of abnormal stock returns?

Diamond 341

This study examines the announcement effects of offering convertible debt using data from the US market from 2006 to 2015. Convertible debt has become a widely used mode of financing, especially for high-risk companies. It is important for both issuers and investors to understand how this financing option may affect the underlying equity of the issuing company, if at all. This paper includes the calculation of abnormal returns using event study methodology. The abnormal returns will be regressed against a number of potential firm and market characteristics to explore which factors affect the magnitude of the potential abnormal returns.

http://digitalcommons.colby.edu/clas/2015/program/252