Event Title
Announcement effects of convertible debt: Which firm and market characteristics affect the magnitude of abnormal stock returns?
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
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.
https://digitalcommons.colby.edu/clas/2015/program/252