The effect of debt securities issuance towards equity market behavior in Malaysia (Kesan penerbitan sekuriti hutang terhadap kelakuan pasaran ekuiti di 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 examina...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
UKM Press
2012
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| Online Access: | https://repo.uum.edu.my/id/eprint/15417/1/2137-4192-1-SM.pdf |
| _version_ | 1803626972203450368 |
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| author | Chin, Sze Kim Abdullah, Nur Adiana Hiau |
| author_facet | Chin, Sze Kim Abdullah, Nur Adiana Hiau |
| author_sort | Chin, Sze Kim |
| collection | UUM |
| 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. |
| first_indexed | 2024-07-04T05:58:39Z |
| format | Article |
| id | uum-15417 |
| institution | Universiti Utara Malaysia |
| language | English |
| last_indexed | 2024-07-04T05:58:39Z |
| publishDate | 2012 |
| publisher | UKM Press |
| record_format | dspace |
| spelling | uum-154172016-04-20T01:49:00Z https://repo.uum.edu.my/id/eprint/15417/ The effect of debt securities issuance towards equity market behavior in Malaysia (Kesan penerbitan sekuriti hutang terhadap kelakuan pasaran ekuiti di Malaysia) Chin, Sze Kim Abdullah, Nur Adiana Hiau HF5601 Accounting 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. UKM Press 2012 Article PeerReviewed application/pdf en https://repo.uum.edu.my/id/eprint/15417/1/2137-4192-1-SM.pdf Chin, Sze Kim and Abdullah, Nur Adiana Hiau (2012) The effect of debt securities issuance towards equity market behavior in Malaysia (Kesan penerbitan sekuriti hutang terhadap kelakuan pasaran ekuiti di Malaysia). Jurnal Pengurusan, 36. pp. 45-58. ISSN 0127-2713 http://ejournals.ukm.my/pengurusan/article/view/2137 |
| spellingShingle | HF5601 Accounting Chin, Sze Kim Abdullah, Nur Adiana Hiau The effect of debt securities issuance towards equity market behavior in Malaysia (Kesan penerbitan sekuriti hutang terhadap kelakuan pasaran ekuiti di Malaysia) |
| title | The effect of debt securities issuance towards equity market behavior in Malaysia
(Kesan penerbitan sekuriti hutang terhadap kelakuan pasaran ekuiti di Malaysia) |
| title_full | The effect of debt securities issuance towards equity market behavior in Malaysia
(Kesan penerbitan sekuriti hutang terhadap kelakuan pasaran ekuiti di Malaysia) |
| title_fullStr | The effect of debt securities issuance towards equity market behavior in Malaysia
(Kesan penerbitan sekuriti hutang terhadap kelakuan pasaran ekuiti di Malaysia) |
| title_full_unstemmed | The effect of debt securities issuance towards equity market behavior in Malaysia
(Kesan penerbitan sekuriti hutang terhadap kelakuan pasaran ekuiti di Malaysia) |
| title_short | The effect of debt securities issuance towards equity market behavior in Malaysia
(Kesan penerbitan sekuriti hutang terhadap kelakuan pasaran ekuiti di Malaysia) |
| title_sort | effect of debt securities issuance towards equity market behavior in malaysia kesan penerbitan sekuriti hutang terhadap kelakuan pasaran ekuiti di malaysia |
| topic | HF5601 Accounting |
| url | https://repo.uum.edu.my/id/eprint/15417/1/2137-4192-1-SM.pdf |
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