INTRA-INDUSTRY EFFECTS OF COVNERTIBLE BONDS ISSUE:THE CASE OF MANUFACTURING INDUSTRY IN CHINA
This paper analyzes the reaction of the rival firms to the convertible bond (CB) issue announcements of the firm which initially annouce CB issuing in the industry. Seemingly Unrelated Regression (SUR) method is used here to measure the intra-industry effects on the Board Notice and issue annoucement date of convertible bonds issuing. The results show most of the rival firms’market reactions are positive on the Board Notice date, while negative on the issue announcement date. The implication of the results is that CB issue annoucement is good news for rival firms when an intra-industry firm initially annouce CB issue application. CB issue annouce ment indicates a potential new financing channel for the whole industry. However, annoucment of CB issue plan approved is bad news for rival firms since CB issuing could increase issuer’s market competition in the in dustry.
Convertible Bond Seemingly Unrelated Regression (SUR) Manufacturing Industry Intra-industry effects
Hui Mou Duo Xie Haiyan Wang Ling Liu
School of Economics and Management, Beihang University, Beijing 100083, China Sinosafe General Insurance Corporation, Beijing 100029, China School of Information and Technology, Beijing Forestry University, Beijing 100083, China School of Management, Henan University of Finance and Economics, Zhengzhou, China
国际会议
The Ninth International Conference on Industrial Management(第九届工业管理国际会议 ICIM2008)
日本大阪
英文
943-953
2008-09-16（万方平台首次上网日期，不代表论文的发表时间）