Kleidt The Use of Hybrid Securities

Market Timing, Investor Rationing, Signaling and Asset Restructuring
2006
ISBN: 978-3-8350-9077-4
Verlag: Deutscher Universitätsverlag
Format: PDF
Kopierschutz: 1 - PDF Watermark

E-Book, Englisch, Band 54, 164 Seiten, eBook

Reihe: ebs-Forschung, Schriftenreihe der EUROPEAN BUSINESS SCHOOL Schloß Reichartshausen

Benjamin Kleidt analyzes why firms decide to issue hybrid securities. He provides insights into the financing behaviour of issuing firms with regard to operating and stock price performance prior and subsequent to hybrid security issues and shows that issuance motives for the use of different forms of hybrid securities are as diverse as available structures for this asset class.

Dr. Benjamin Kleidt ist wissenschaftlicher Mitarbeiter des Stiftungslehrstuhls Bank- und Finanzmanagement der European Business School, Oestrich-Winkel.

Zielgruppe

Research

Autoren/Hrsg.

Kleidt, Benjamin

Weitere Mitwirkende

Schiereck, Prof. Dr. Dirk

Inhaltsverzeichnis

1;Abstract;7
2;Foreword;9
3;Preface;11
4;Contents;12
5;List of abbreviations;16
6;List of figures;17
7;List of tables;18
8;List of symbols;23
9;I Introduction;24
9.1;1 Problem and objectives;24
9.2;2 Organization of the thesis;26
10;II Definitions;28
10.1;1 Hybrid securities;28
10.2;2 Convertible debt;28
10.3;3 Convertible preferred stock;33
10.4;4 Mandatory convertibles;33
10.5;5 Exchangeable debt;35
11;Ill Why firms issue convertible debt - Market timing and investor rationing;36
11.1;1 Introduction;36
11.2;2 Existing literature;39
11.2.1;2.1 The traditional hypothesis;39
11.2.2;2.2 The rationing-hypothesis;41
11.2.3;2.3 The timing-hypothesis;42
11.3;3 Data and proxy variables;43
11.4;4 Operating performance;47
11.4.1;4.1 Methodology;47
11.4.2;4.2 Operating performance of convertible debt issuers;51
11.4.3;4.3 Operating performance of equity issuers;55
11.4.4;4.4 A comparison of operating performance;58
11.4.5;4.5 Determinants of operating performance;60
11.5;5 Stock price performance;64
11.5.1;5.1 Buy-and-hold abnormal returns;65
11.5.2;5.2 Calendar-time abnormal returns;70
11.5.3;5.3 Discussion;74
11.6;6 Conclusion;78
12;IV A note on systematic risk changes around convertible debt issues;80
12.1;1 Introduction;80
12.2;2 Data;81
12.3;3 Changes in systematic risk;82
12.4;4 Conclusion;87
13;V The concurrent offerings puzzle;90
13.1;1 Introduction;90
13.2;2 Theoretical background;93
13.3;3 Data and proxy variables;97
13.3.1;3.1 Sample selection procedure;97
13.3.2;3.2 Data summary information;98
13.3.3;3.3 Proxy variables;100
13.4;4 Empirical analysis of company characteristics;104
13.4.1;4.1 Presentation of pre-issue company characteristics;104
13.4.2;4.2 A regression model of security choice;106
13.5;5 The stock price reaction to the announcement of concurrent offerings;110
13.5.1;5.1 The magnitude of cumulative average abnormal returns;110
13.5.2;5.2 The cross-section of cumulative abnormal returns;113
13.6;6 Long-run abnormal returns;117
13.6.1;6.1 Buy-and-hold abnormal returns;118
13.6.2;6.2 Tests of robustness;120
13.6.3;6.3 Discussion;122
13.7;7 Conclusion;125
14;VI Divestment of equity stakes - An analysis of exchangeable debt;128
14.1;1 Introduction;129
14.2;2 Theoretical background;131
14.2.1;2.1 Motives for exchangeable debt issuance;131
14.2.2;2.2 Existing empirical evidence for exchangeable debt issuance;133
14.2.3;2.3 The magnitude of announcement returns;135
14.2.4;2.4 The cross-section of announcement returns;139
14.3;3 Data and methodology;147
14.3.1;3.1 Data;147
14.3.2;3.2 Methodology;152
14.4;4 Presentation and interpretation of results;155
14.4.1;4.1 The magnitude of announcement returns;155
14.4.2;4.2 The cross-section of announcement returns;158
14.4.3;4.3 Mandatory exchangeables;169
14.5;5 Conclusion;170
15;VII Conclusions and outlook;172
16;Bibliography;176

Definitions.- Why firms issue convertible debt — Market timing and investor rationing.- A note on systematic risk changes around convertible debt issues.- The concurrent offerings puzzle.- Divestment of equity stakes — An analysis of exchangeable debt.- Conclusions and outlook.

Über Autor(innen)

Dr. Benjamin Kleidt ist wissenschaftlicher Mitarbeiter des Stiftungslehrstuhls Bank- und Finanzmanagement der European Business School, Oestrich-Winkel.