The Experts below are selected from a list of 36 Experts worldwide ranked by ideXlab platform
Abhay Abhyankar - One of the best experts on this subject based on the ideXlab platform.
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long run abnormal performance following convertible Preference Share and convertible bond issues new evidence from the united kingdom
International Review of Economics & Finance, 2006Co-Authors: Abhay AbhyankarAbstract:Abstract We study the long-run abnormal performance of a sample of U.K. firms following convertible Preference Share and convertible bond issues over the period 1982–1996. We are the first to study, as far as we are aware, the long-run stock price performance of firms following convertible Preference Share issues. Furthermore, our data set has been extracted from original sources and thus mitigates to some extent concerns about data-snooping biases. We measure long-run abnormal performances both prior to and following the issuance of convertible bonds and convertible Preference Shares and by the method of the issue used. Using a range of metrics to assess the robustness of long-run abnormal performance, we find evidence of pre-offer overperformance and post-offer underperformance using buy-and-hold abnormal returns (BHARs). However, post-offer underperformance is statistically significant in the case of convertible Preference Share issuers. Implementing a calendar-time approach, we again find underperformance for convertible Preference Share issuers. We do not find any evidence of long-run stock price underperformance for firms following the issuance of convertible bonds.
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wealth effects of convertible bond and convertible Preference Share issues an empirical analysis of the uk market
Journal of Banking and Finance, 1999Co-Authors: Abhay Abhyankar, Alison DunningAbstract:Abstract We examine the wealth effects of the announcement of issues of different types of convertible securities by UK firms and find significant negative effects on Shareholder wealth. We however, also find that when the sample is partitioned by method of issue, privately placed convertible bonds, in contrast to previous research, exhibit a negative impact on firm wealth. Further, we also find negative wealth effects for firms that issue convertible securities to refinance previous debt or finance specific acquisitions. However announcements of convertible bond issues, for the purpose of financing capital expenditure schemes, show significant positive wealth effects. Finally, we find mixed support for testable predictions of the main theoretical models relating cross-sectional firm characteristics of convertible bond issuers to abnormal returns.
Sandra Laurent - One of the best experts on this subject based on the ideXlab platform.
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convertible debt and Preference Share financing an empirical study
Social Science Research Network, 2005Co-Authors: Sandra LaurentAbstract:The factors affecting the decision to issue different hybrid securities are tested for the UK market. Support is found only for the sweetened debt theory and not found for the delayed equity or moral hazard theories for convertible debt. Weak support is found for the financial distress and taxation theories for Preference Shares. I conjecture this is due to the different taxation rates and bankruptcy codes between the US and the UK. Also companies are found to resort to any form of Preference Share financing when ordinary Shares are undervalued. Unlike previous UK studies, hybrid security issuers are found to be significantly smaller than debt issuers.
Alison Dunning - One of the best experts on this subject based on the ideXlab platform.
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wealth effects of convertible bond and convertible Preference Share issues an empirical analysis of the uk market
Journal of Banking and Finance, 1999Co-Authors: Abhay Abhyankar, Alison DunningAbstract:Abstract We examine the wealth effects of the announcement of issues of different types of convertible securities by UK firms and find significant negative effects on Shareholder wealth. We however, also find that when the sample is partitioned by method of issue, privately placed convertible bonds, in contrast to previous research, exhibit a negative impact on firm wealth. Further, we also find negative wealth effects for firms that issue convertible securities to refinance previous debt or finance specific acquisitions. However announcements of convertible bond issues, for the purpose of financing capital expenditure schemes, show significant positive wealth effects. Finally, we find mixed support for testable predictions of the main theoretical models relating cross-sectional firm characteristics of convertible bond issuers to abnormal returns.
Bedada, Tefera Balcha - One of the best experts on this subject based on the ideXlab platform.
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Effect of Capital Structure on Firm’s Profitability (Evidence from Endowment Fund for Rehabilitation of Tigray /EFFORT/Manufacturing Companies)
'International Institute for Science Technology and Education', 2020Co-Authors: Bedada, Tefera BalchaAbstract:Capital structure the mix of securities and the proportionate sums that make up capitalization. It is the combination of unlike sources of long-term sources such as equity Shares, Preference Shares, debentures, long-term loans and retained earnings. The term capital structure refers to the link between the various long-term sources financing such as equity capital, Preference Share capital and debt capital. This research was done to assess the effect of capital structure on profitability of EFFORT manufacturing companies. The researcher used secondary sources of data, which is audited financial statements such as balance sheet and income statement of eight (8) manufacturing companies from period of 2008 to 2017. The companies selected are those operated for at least 10 years. Because of this all selected samples are aged in the operation more than ten (10) years. For this study panel data of eight (8) manufacturing firms for ten (10) years from (2008 to 2017) is used. Independent variables used for this study were total debt to total asset, total debt to equity, and Long-term debt to total assets and dependent variable were return on assets, and also control variables were firm size, sales growth rate and tangibility. Under this study descriptive statistics and correlation analysis were employed. For panel data regression, random effects regression was used for the data analysis. The result of the study shows that total debt to assets (TDA) and Long term debt to total assets (LTDA) are negatively significant with profitability of the firm and total debt to equity (TDE) is positively significant with profitability of the firm. As the result shows most of EFFORT manufacturing firms’ use debt financing. The researcher recommends that for all managers of EFFORT manufacturing companies’ equity source of finance is more profitable than debt financing. Keywords: capital structure, profitability, returns on assets, total debt to assets, Long term debt to total assets, and total debt to equity. DOI: 10.7176/RJFA/11-7-05 Publication date: April 30th 202
Guo Yanwe - One of the best experts on this subject based on the ideXlab platform.
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study on Preference Share of the chinese enterprise in modern china
Historical Research in Anhui, 2013Co-Authors: Guo YanweAbstract:As an important form of enterprise organization,joint-stock enterprise has played a vital role on raising capital for economic development in the modernization process of traditional China.Joint-stock enterprise has also changed a lot in compliant with the trend,such as the emergence and development of Preference Share,which was an important part of these changes above.Preference Share has played a very important role for the Chinese enterprises' founding,developing and solving crisis in modern China.So it was quite essential to systematically research and analyze Preference Share's creation background and its rights and interests from the enterprise system perspective.