Investor reaction to new issuances of U.S. high-yield debt
Document Type
Article
Publication Date
1-1-2008
Abstract
This paper investigates firms issuing high-yield debt and the impact on their stock price by identifying determinants of the negative abnormal return that surrounds the announcement of an issue in the short-run. It is learned the length, coupon payment and amount of the issue are significant in explaining the CAR as is the age of the firm, first-time issuers and the marketplace where its stock trades. Firm performance ratios including the current and total-asset-turnover ratio also have explanatory power. These determinants of the CAR have an explanatory power approaching 55%.
Recommended Citation
Wolfe, David R., "Investor reaction to new issuances of U.S. high-yield debt" (2008). College of Business and Economics- Faculty Publications. 268.
https://digitalcommons.uncfsu.edu/college_business_economics/268