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Convertible bond announcement effects: why is Japan different?
journal contribution
posted on 2016-05-11, 15:20 authored by Marie Dutordoir, Hui Li, Frank Hong Liu, Patrick VerwijmerenU.S. and Japanese firms dominate global convertible bond issuance. Previous research documents more favorable convertible bond announcement effects in Japan than in the U.S. and other developed countries. Using a global sample of convertible bonds issued from 1982 to 2012, we find that the more favorable announcement effects of Japanese convertibles are driven by their stated uses of proceeds. Japanese convertibles more often include capital expenditure as an intended use, while U.S. firms tend to mention general purposes to motivate their offering. Our findings illustrate the value to firms of being more explicit when disclosing the intended use of proceeds of security offerings.
History
School
- Business and Economics
Department
- Business
Published in
Journal of Corporate FinanceVolume
37Pages
76 - 92Citation
DUTORDOIR, M. ... et al, 2016. Convertible bond announcement effects: why is Japan different? Journal of Corporate Finance, 37, pp. 76 - 92Publisher
© ElsevierVersion
- VoR (Version of Record)
Publisher statement
This work is made available according to the conditions of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0) licence. Full details of this licence are available at: https://creativecommons.org/licenses/by-nc-nd/4.0/Acceptance date
2015-12-10Publication date
2015-12-22Notes
This paper is closed access.ISSN
0929-1199Publisher version
Language
- en