Suchergebnisse

AbstractThe hybrid nature of convertible bonds continues to interest corporate financial managers, investors, and economists. While much theoretical and empirical research examines an issuer's choice between using straight debt and equity, little research evaluates how an issuer chooses among debt, equity, and convertible bonds. This study extends Marsh's [13] research on the differences between debt and equity issuers in the United Kingdom by examining U.S. industrial firms that issue debt, equity, or convertible bonds. It also illustrates how various distinguishing features influence the probability that each security will be issued.

AbstractStock price reactions to warrant‐debt unit financing announcements are examined and a significant two‐day average abnormal return of −1.32 percent is found. The negative average abnormal return is similar to that observed for convertible debt financing announcements in previous research. Warrant‐debt financing decisions result in large increases in capitalization; on average, issuers' long‐term debt increases by 84 percent, and common shares outstanding increase by 18 percent assuming full exercise of the warrants.

Equity investment is an important component of domestic investment and for over two decades Nigeria has witnessed volatility in the value of equity investment. The objectives of the study are to examine the effects of interest rate and domestic debt on private equity investment growth in Nigeria covering the 1987-2010 period as well as to determine if government borrowing crowds out private investment and borrowing. We used the co-integration technique to test the long run relationship among the variables and went to use standard ordinary least squares technique and error correction analysis. The results show that domestic debt and GDP growth rate had a positive effect on equity investment as expected. On the other hand, monetary policy rate had a negative effect on equity investment. The results of this article have crucial implications on the desire by individuals, firms and governments to participate in the equity investment market and policy-makers' decisions. The Nigerian government should take cognisance of the 25 percent debt-to-GDP benchmark as adopted by the Federal Executive Council in 2010 and the revision to 30 percent in view of recent realities or the international norm of 60 percent target. Furthermore, funds from debt should be used productively and avoid misappropriation. The monetary policy rate should be allowed to exhibit the interplay of the market forces so as to encourage both internal and external capital investment in the Nigerian economy.

Debt and equity issuance are procyclical for most size-sorted firm categories of listed US firms and the procyclicality of equity issuance decreases monotonically with firm size. At the aggregate level, however, the results for equity issuance are not conclusive due to different behavior of the largest firms, especially those in the top one percent. During a deterioration in economic conditions, firms limit the impact of the reduction in external financing on investment by shedding financial assets. This is true for a worsening in aggregate as well as firm-specific conditions. (JEL E32, G32, L11, L25)

Debt Equity Swaps sind en vogue. Nach aufsehenerregenden Fällen der Unternehmensmigration nach England, wurde die Umsetzbarkeit von Debt Equity Swaps zu dem wesentlichen Indikator für die Wettbewerbsfähigkeit eines Sanierungsstandorts. Der Gesetzgeber des ESUG hat § 225a Abs. 2 InsO als pars pro toto für moderne Sanierungsinstrumente in die InsO eingeführt, wobei das englische Recht als leuchtendes Vorbild diente. Diese sehr spezielle und eher praktische Fragestellung eignet sich für eine induktive Untersuchung der übergeordneten Frage, welchen Einfluss die Insolvenz einer Gesellschaft auf die Rechtsposition ihrer Gläubiger und Anteilseigner hat. Anhand einer komparativen Analyse der Umsetzung von Debt Equity Swaps nach englischem und deutschem Recht soll mit der Arbeit herausgearbeitet werden ob und unter welchen Voraussetzungen es sich bei diesem Trend um eine bloße Modeerscheinung oder ein taugliches Sanierungsinstrument handelt