The Issuance of German SME Bonds and its Impact on Operating Performance

Patrick Christian Feihle () and Jochen Lawrenz ()
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Patrick Christian Feihle: Universität Innsbruck
Jochen Lawrenz: Universität Innsbruck

Schmalenbach Business Review, 2017, vol. 18, issue 3, No 3, 227-259

Abstract: Abstract This article investigates the post-issuance performance of firms in the German SME Bond (Mittelstandsanleihen) market segment. In particular, we ask if issuers’ operating performance is significantly different relative to an ex-ante indistinguishable non-issuer control sample. To properly identify the comparison sample and avoid endogeneity concerns, we implement a propensity score matching process based on a set of financial variables. Our main results show that issuers actually display lower post-issuance operating performance which amplifies their financial fragility. Our results contribute to the discussion if the poor performance of this market segment could have been identified ex-ante.

Keywords: Post-Issuance Performance; German SME Bonds; Mittelstandsanleihen; Propensity Score; JEL; G10; G20; G30 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (1)

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DOI: 10.1007/s41464-017-0036-9

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