Akdoğu, Evrim and Avcı, Süreyya Burcu and Şimşir, Şerif Aziz (2021) Stock price reaction to debt offerings: the Turkish evidence. Emerging Markets Finance and Trade, 57 (14). pp. 4070-4088. ISSN 1540-496X (Print) 1558-0938 (Online)
This is the latest version of this item.
Official URL: https://dx.doi.org/10.1080/1540496X.2020.1798225
Abstract
We investigate the valuation effects of debt issues on the issuing firms’ common stock using a sample of Turkish issuers. For the sample of non-financial firms, we find no significant wealth effects for debt issues around the announcement dates. However, market reactions are more positive when information asymmetry between firm managers and outside investors is low, agency costs are high, and when debt issues are likely to carry positive information about firms’ prospects. These results support pecking order, signaling, and agency theories of capital structure. In additional tests, we find positive market reactions to debt issue announcements of financial firms.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | debt issue; Debt offerings; emerging markets; event study; stock valuation; Turkey |
| Divisions: | Sabancı Business School |
| Depositing User: | Evrim Akdoğu |
| Date Deposited: | 31 Aug 2022 20:51 |
| Last Modified: | 31 Aug 2022 20:51 |
| URI: | https://research.sabanciuniv.edu/id/eprint/43581 |
Available Versions of this Item
-
Stock price reaction to debt offerings: the Turkish evidence. (deposited 20 Sep 2020 12:34)
- Stock price reaction to debt offerings: the Turkish evidence. (deposited 31 Aug 2022 20:51) [Currently Displayed]
Actions (login required)
- View Item