Stocks Returns and ECB Conversion Premium Announcements

• Main Authors: Chia-Fang Hsu, 許嘉芳
• Other Authors: 作者未提供
• Format: Others
• Language: zh-TW
• Published: 2008
• Online Access: http://ndltd.ncl.edu.tw/handle/ysjzg9

碩士 === 銘傳大學 === 財務金融學系碩士班 === 96 === This article investigates the existence of signaling effects which introduced by ECB issuer announced the conversion premium. The empirical results show that there is significantly abnormal return at the announcement date when the news is disseminate by daily newspaper, but the same phenomenon does not find out when the information is hidden. Furthermore, the abnormal return is decreased with conversion premium, but increased with leverage ratio. It is consistent with Stein (1992) hypothesis that ECB is backdoor equity instrument for solving the firm’s financial structure problem.