The effect of debt securities issuance towards equity market behavior in Malaysia

The effect of debt securities issuance towards equity market behavior in Malaysia

The study investigates the impact of debt securities issuance on the equity market behavior of the issuers. Event study results reveal that overall debt securities issuers experience an increase in equity return and a decrease in systematic risk, while total risk remains unchanged. The further exami...

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Main Authors: Chin , Sze Kim, Nur Adiana Hiau Abdullah
Format: Article
Language:English
Published: Penerbit Universiti Kebangsaan Malaysia 2012
Online Access:http://journalarticle.ukm.my/6378/
http://journalarticle.ukm.my/6378/
http://journalarticle.ukm.my/6378/1/Fast_color_scan_to_a_PDF_file_4.DOC
id ukm-6378
recordtype eprints
spelling ukm-63782013-07-05T01:52:57Z http://journalarticle.ukm.my/6378/ The effect of debt securities issuance towards equity market behavior in Malaysia Chin , Sze Kim Nur Adiana Hiau Abdullah, The study investigates the impact of debt securities issuance on the equity market behavior of the issuers. Event study results reveal that overall debt securities issuers experience an increase in equity return and a decrease in systematic risk, while total risk remains unchanged. The further examination of the 100 debt securities issuing companies finds significant differences between hybrid and non-hybrid debt securities issues. Hybrid debt securities experience a significant increase in equity return, decline in systematic risk and increase in total risk. Non-hybrid debt securities issues, however, are found to have no impact on equity market behavior The findings of the study imply that the general decline in systematic risk for debt securities issuing companies could motivate the issuance of debt securities, particularly the hybrid type, and thus improve market liquidity. Further non-hybrid debt securities may not be the appropriate alternative for sending a market signal as no impact on market behavior is found following the issuance. Penerbit Universiti Kebangsaan Malaysia 2012-12 Article PeerReviewed application/msword en http://journalarticle.ukm.my/6378/1/Fast_color_scan_to_a_PDF_file_4.DOC Chin , Sze Kim and Nur Adiana Hiau Abdullah, (2012) The effect of debt securities issuance towards equity market behavior in Malaysia. Jurnal Pengurusan, 36 . pp. 45-58. ISSN 0127-2713 http://pkukmweb.ukm.my/penerbit/jurus.htm
repository_type Digital Repository
institution_category Local University
institution Universiti Kebangasaan Malaysia
building UKM Institutional Repository
collection Online Access
language English
description The study investigates the impact of debt securities issuance on the equity market behavior of the issuers. Event study results reveal that overall debt securities issuers experience an increase in equity return and a decrease in systematic risk, while total risk remains unchanged. The further examination of the 100 debt securities issuing companies finds significant differences between hybrid and non-hybrid debt securities issues. Hybrid debt securities experience a significant increase in equity return, decline in systematic risk and increase in total risk. Non-hybrid debt securities issues, however, are found to have no impact on equity market behavior The findings of the study imply that the general decline in systematic risk for debt securities issuing companies could motivate the issuance of debt securities, particularly the hybrid type, and thus improve market liquidity. Further non-hybrid debt securities may not be the appropriate alternative for sending a market signal as no impact on market behavior is found following the issuance.
format Article
author Chin , Sze Kim
Nur Adiana Hiau Abdullah,
spellingShingle Chin , Sze Kim
Nur Adiana Hiau Abdullah,
The effect of debt securities issuance towards equity market behavior in Malaysia
author_facet Chin , Sze Kim
Nur Adiana Hiau Abdullah,
author_sort Chin , Sze Kim
title The effect of debt securities issuance towards equity market behavior in Malaysia
title_short The effect of debt securities issuance towards equity market behavior in Malaysia
title_full The effect of debt securities issuance towards equity market behavior in Malaysia
title_fullStr The effect of debt securities issuance towards equity market behavior in Malaysia
title_full_unstemmed The effect of debt securities issuance towards equity market behavior in Malaysia
title_sort effect of debt securities issuance towards equity market behavior in malaysia
publisher Penerbit Universiti Kebangsaan Malaysia
publishDate 2012
url http://journalarticle.ukm.my/6378/
http://journalarticle.ukm.my/6378/
http://journalarticle.ukm.my/6378/1/Fast_color_scan_to_a_PDF_file_4.DOC
first_indexed 2023-09-18T19:46:43Z
last_indexed 2023-09-18T19:46:43Z
_version_ 1777405948673916928

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