NDLI: Stock Price Effects of Mandatory Exchangeable Debt

Content Provider	Springer Nature Link
Author	Danielova, Anna N. Smart, Scott B.
Copyright Year	2011
Abstract	We study mandatory exchangeable debt offerings. A firm that issues mandatory exchangeable debt requires bondholders to exchange their bonds for shares of the underlying firm in which the issuing firm has a stake. We find significant announcement (−3.3%) and long-run (−13%) abnormal price declines for underlying companies. The evidence is consistent with the hypothesis that mandatory exchangeable debt issuers exploit private information that they possess to issue mandatory exchangeable debt when the underlying stock is overvalued.
Starting Page	40
Ending Page	52
Page Count	13
File Format	PDF
ISSN	10830898
Journal	International Advances in Economic Research
Volume Number	18
Issue Number	1
e-ISSN	1573966X
Language	English
Publisher	Springer US
Publisher Date	2011-11-17
Publisher Place	Boston
Access Restriction	One Nation One Subscription (ONOS)
Subject Keyword	Corporate Finance and Governance: General Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill Mandatory exchangeable debt Asymmetric Information Stock price effects Macroeconomics/Monetary Economics Economics general International Economics Economic Growth Microeconomics
Content Type	Text
Resource Type	Article
Subject	Economics and Econometrics

Sl.	Authority	Responsibilities	Communication Details
1	Ministry of Education (GoI), Department of Higher Education	Sanctioning Authority	https://www.education.gov.in/ict-initiatives
2	Indian Institute of Technology Kharagpur	Host Institute of the Project: The host institute of the project is responsible for providing infrastructure support and hosting the project	https://www.iitkgp.ac.in
3	National Digital Library of India Office, Indian Institute of Technology Kharagpur	The administrative and infrastructural headquarters of the project	Dr. B. Sutradhar bsutra@ndl.gov.in
4	Project PI / Joint PI	Principal Investigator and Joint Principal Investigators of the project	Dr. B. Sutradhar bsutra@ndl.gov.in Prof. Saswat Chakrabarti will be added soon
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Stock Price Effects of Mandatory Exchangeable Debt