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

The study investigates the impact of debt securities issuance on equity market behaviour of the issuers. The event study results reveal that overall debt securities issuers experience increase in equity return following debt securities issuance and decrease in systematic risk while total risk remain...

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Main Authors: Chin, Sze Kim, Abdullah, Nur Adiana Hiau
Other Authors: Hoque, Tanzil
Format: Conference or Workshop Item
Language:English
Published: World Business Institute Australia 2011
Subjects:
HG Finance
Online Access:http://repo.uum.edu.my/3726/1/Ch.pdf
http://repo.uum.edu.my/3726/
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spelling my.uum.repo.37262011-08-11T04:02:05Z http://repo.uum.edu.my/3726/ The effect of debt securities issuance towards equity market behavior in Malaysia Chin, Sze Kim Abdullah, Nur Adiana Hiau HG Finance The study investigates the impact of debt securities issuance on equity market behaviour of the issuers. The event study results reveal that overall debt securities issuers experience increase in equity return following debt securities issuance and decrease in systematic risk while total risk remain unchanged.Further examination of the 100 debt securities issuing companies found significant differences between hybrid and non-hybrid debf securifies issues. Hybrid debt securities experience significant fall in equity returns and systematic risk but an increase in total risk.Non-hybrid debt securities issues, however; are found to have no impact on equity market behaviour. Findings of the study imply that general decline in systematic risk for debt securities issuing company could motivate issuance of debt securities and thus improve market liquidity.Further; non-hybrid debt securities are not appropriate to be used for market signal as no impact on market behaviour was found following the issuance. World Business Institute Australia Hoque, Tanzil 2011 Conference or Workshop Item PeerReviewed application/pdf en http://repo.uum.edu.my/3726/1/Ch.pdf Chin, Sze Kim and Abdullah, Nur Adiana Hiau (2011) The effect of debt securities issuance towards equity market behavior in Malaysia. In: Proceedings of Annual Paris Conference on "Money, Economy and Management", 14-15 July 2011 , Hotel Novotel Paris Tour Eiffel, Paris, France . http://wbiconpro.com/
institution Universiti Utara Malaysia
building UUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Utara Malaysia
content_source UUM Institutionali Repository
url_provider http://repo.uum.edu.my/
language English
topic HG Finance
spellingShingle HG Finance
Chin, Sze Kim
Abdullah, Nur Adiana Hiau
The effect of debt securities issuance towards equity market behavior in Malaysia
description The study investigates the impact of debt securities issuance on equity market behaviour of the issuers. The event study results reveal that overall debt securities issuers experience increase in equity return following debt securities issuance and decrease in systematic risk while total risk remain unchanged.Further examination of the 100 debt securities issuing companies found significant differences between hybrid and non-hybrid debf securifies issues. Hybrid debt securities experience significant fall in equity returns and systematic risk but an increase in total risk.Non-hybrid debt securities issues, however; are found to have no impact on equity market behaviour. Findings of the study imply that general decline in systematic risk for debt securities issuing company could motivate issuance of debt securities and thus improve market liquidity.Further; non-hybrid debt securities are not appropriate to be used for market signal as no impact on market behaviour was found following the issuance.
author2 Hoque, Tanzil
author_facet Hoque, Tanzil
Chin, Sze Kim
Abdullah, Nur Adiana Hiau
format Conference or Workshop Item
author Chin, Sze Kim
Abdullah, Nur Adiana Hiau
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 World Business Institute Australia
publishDate 2011
url http://repo.uum.edu.my/3726/1/Ch.pdf
http://repo.uum.edu.my/3726/
http://wbiconpro.com/
_version_ 1644278580134281216
score 13.211869

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