Too transparent for signalling? A global analysis of bond issues by property companies

Marc Berninger, Paul Bossong, Dirk Schiereck and Marcel Steinhardt

Publications of Darmstadt Technical University, Institute for Business Studies (BWL) from Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL)

Abstract: Bond issues often result in negative revaluations of the market value of equity. These market reactions are usually explained by negative signals and asymmetric information about the use of the proceeds. In industries with rather transparent investment opportunities these arguments are not applicable and we expect to find no negative revaluations. Consequently, analysing the stock price reactions to 2299 bond issues by real estate companies between 1996 and 2019, we observe none to positive reactions on the announcement of an upcoming bond issue. The findings underpin the necessity for controlling of industry effects in empirical studies on capital structure decisions.

Date: 2023
New Economics Papers: this item is included in nep-ure
Note: for complete metadata visit http://tubiblio.ulb.tu-darmstadt.de/149020/
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Published in Accounting & Finance 3 (2023) : pp. 3125-3145

Downloads: (external link)
https://tuprints.ulb.tu-darmstadt.de/24658

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:dar:wpaper:149020

Access Statistics for this paper

More papers in Publications of Darmstadt Technical University, Institute for Business Studies (BWL) from Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL) Contact information at EDIRC.
Bibliographic data for series maintained by Dekanatssekretariat ().