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Do Shareholders Value Bond Offerings? A Meta-Analysis

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  • Paul-Olivier KLEIN

    (LaRGE Research Center, Université de Strasbourg)

Abstract

Empirical literature finds contradicting results on the value shareholders give to a bond offering. To address this issue, this paper performs a meta-analysis on the stock reaction to bond offerings. I use a sample of 21,157 issues from 29 studies published between 1984 and December 2015. Overall, shareholders react positively to a bond issue. Heterogeneity in previous results can be explained by the length of the observation windows and the choice of the event date. Differences in the significance of the results are mainly due to the estimation length, the sample screening, the quality of the publication and the statistic used to test the significance of the abnormal returns.

Suggested Citation

  • Paul-Olivier KLEIN, 2017. "Do Shareholders Value Bond Offerings? A Meta-Analysis," Working Papers of LaRGE Research Center 2017-04, Laboratoire de Recherche en Gestion et Economie (LaRGE), Université de Strasbourg.
  • Handle: RePEc:lar:wpaper:2017-04
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    2. Nebosja Dimic & Vitaly Orlov, 2018. "Internationalization and firm valuation: New evidence from first offshore bond issuances of US firms," Working Papers on Finance 1803, University of St. Gallen, School of Finance.

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    More about this item

    Keywords

    Meta-Analysis; Bond Issue; Stock Reaction.;
    All these keywords.

    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading

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