We examine aggregate volume of straight debt IPOs issued by nonfinancial firms over an extended period of 1970 to 2010. We find that aggregate debt IPO activities display wave patterns. Similar to equity IPOs, both the number and total proceeds of debt IPOs vary substantially over time. We explore possible explanations for the debt IPO waves with four groups of variables - capital market conditions, investor sentiment, information asymmetry, and interest rates. Our results indicate that debt IPO volume is significantly associated with term spread, stock return volatility and interest rates, suggesting that bond market conditions and information asymmetry play significant roles in explaining time variations in debt IPO volume. However, we do not find a significant role for investor sentiment. We also document that debt IPOs and equity IPOs are mutually Granger caused, suggesting that debt IPOs and equity IPOs tend to move together.
{"title":"Debt IPO Waves","authors":"Kelly Nianyun Cai, Xiaoquan Jiang, Heiwai Lee","doi":"10.2139/ssrn.2132842","DOIUrl":"https://doi.org/10.2139/ssrn.2132842","url":null,"abstract":"We examine aggregate volume of straight debt IPOs issued by nonfinancial firms over an extended period of 1970 to 2010. We find that aggregate debt IPO activities display wave patterns. Similar to equity IPOs, both the number and total proceeds of debt IPOs vary substantially over time. We explore possible explanations for the debt IPO waves with four groups of variables - capital market conditions, investor sentiment, information asymmetry, and interest rates. Our results indicate that debt IPO volume is significantly associated with term spread, stock return volatility and interest rates, suggesting that bond market conditions and information asymmetry play significant roles in explaining time variations in debt IPO volume. However, we do not find a significant role for investor sentiment. We also document that debt IPOs and equity IPOs are mutually Granger caused, suggesting that debt IPOs and equity IPOs tend to move together.","PeriodicalId":255253,"journal":{"name":"Midwest Finance Association 2013 Annual Meeting (Archive)","volume":"8 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2012-08-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129775990","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The macroeconomic environment is an important determinant of firm performance. Nevertheless, many firms are simplistic in the approach they use to identify, analyze and create strategies for managing the vital relationship between intrinsic competitiveness and macroeconomic fluctuations. Few firms disclose this information to outside stakeholders, which means they are prevented from understanding the intrinsic performance. We analyze the effects of the implementation/development of IFRS/IAS 1 on voluntary macroeconomic information disclosure with a focus on information content and market determinants. We base our analysis on a sample of the 100 largest public European firms in the period 2000-2009. We find that the trend of disclosure quality is positive but the overall level of information is still insufficient. The introduction and development of IFRS has little impact on macroeconomic information disclosure quality. The main drivers of the disclosure of voluntary macroeconomic information are found to be corporate governance and cross-listing.
{"title":"Market Determinants of Voluntary Disclosure of Macroeconomic Effects on Corporate Performance","authors":"Lars Oxelheim, Marcus Thorsheim","doi":"10.2139/ssrn.2125037","DOIUrl":"https://doi.org/10.2139/ssrn.2125037","url":null,"abstract":"The macroeconomic environment is an important determinant of firm performance. Nevertheless, many firms are simplistic in the approach they use to identify, analyze and create strategies for managing the vital relationship between intrinsic competitiveness and macroeconomic fluctuations. Few firms disclose this information to outside stakeholders, which means they are prevented from understanding the intrinsic performance. We analyze the effects of the implementation/development of IFRS/IAS 1 on voluntary macroeconomic information disclosure with a focus on information content and market determinants. We base our analysis on a sample of the 100 largest public European firms in the period 2000-2009. We find that the trend of disclosure quality is positive but the overall level of information is still insufficient. The introduction and development of IFRS has little impact on macroeconomic information disclosure quality. The main drivers of the disclosure of voluntary macroeconomic information are found to be corporate governance and cross-listing.","PeriodicalId":255253,"journal":{"name":"Midwest Finance Association 2013 Annual Meeting (Archive)","volume":"125 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2012-08-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114665792","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper examines the relation between information asymmetry, capital structure and the cost of capital across countries, particularly focusing on how the relation is influenced by the various aspects of the institutional environment. Results show that firms with high levels of information asymmetry tend to use more debt capital but less long-term debt, possibly because of the differential impact of information asymmetry on the cost of different types of capital. Furthermore, the positive association between information asymmetry and market leverage is more pronounced in countries with developed banking sectors or with explicit bankruptcy codes, and less prominent in common-law countries and countries with sound law enforcement or with extensive disclosure practices.
{"title":"Information Asymmetry and Capital Structure Around the World","authors":"Wenlian Gao, Feifei Zhu","doi":"10.2139/ssrn.2126451","DOIUrl":"https://doi.org/10.2139/ssrn.2126451","url":null,"abstract":"This paper examines the relation between information asymmetry, capital structure and the cost of capital across countries, particularly focusing on how the relation is influenced by the various aspects of the institutional environment. Results show that firms with high levels of information asymmetry tend to use more debt capital but less long-term debt, possibly because of the differential impact of information asymmetry on the cost of different types of capital. Furthermore, the positive association between information asymmetry and market leverage is more pronounced in countries with developed banking sectors or with explicit bankruptcy codes, and less prominent in common-law countries and countries with sound law enforcement or with extensive disclosure practices.","PeriodicalId":255253,"journal":{"name":"Midwest Finance Association 2013 Annual Meeting (Archive)","volume":"40 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2012-08-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121739202","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Information provided by the U.S. Department of Homeland Security regarding potential terrorist attacks significantly affects U.S. equity and Treasury securities markets. When the government announces heightened terror alert levels, investors’ perceptions of risk increase (as measured by both conditional volatility of returns and implied volatility on Standard P however, equity market responses to these threat-related announcements have declined monotonically over time.
{"title":"Risk, Uncertainty, and the Perceived Threat of Terrorist Attacks","authors":"T. S. Strother, Michael S. Pagano","doi":"10.2139/ssrn.2148882","DOIUrl":"https://doi.org/10.2139/ssrn.2148882","url":null,"abstract":"Information provided by the U.S. Department of Homeland Security regarding potential terrorist attacks significantly affects U.S. equity and Treasury securities markets. When the government announces heightened terror alert levels, investors’ perceptions of risk increase (as measured by both conditional volatility of returns and implied volatility on Standard P however, equity market responses to these threat-related announcements have declined monotonically over time.","PeriodicalId":255253,"journal":{"name":"Midwest Finance Association 2013 Annual Meeting (Archive)","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2012-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124336050","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
京公网安备 11010802042870号
京ICP备2023020795号-1
扫码关注我们
求助内容：
应助结果提醒方式：