Stock index-linked debt and shareholder value

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dc.contributor.author Roberts, Gordon S.
dc.contributor.author Vijayraghavan, Vasumathi
dc.contributor.author Aintablian, Sebouh
dc.date.accessioned 2016-05-10T11:27:15Z
dc.date.available 2016-05-10T11:27:15Z
dc.date.copyright 2002 en_US
dc.date.issued 2016-05-10
dc.identifier.issn 1354-7798 en_US
dc.identifier.uri http://hdl.handle.net/10725/3752 en_US
dc.description.abstract French banks and non-financial companies issue index-linked debt whose value at maturity is indexed to the CAC 40 or to a basket of European indices. This paper examines stock announcement effects associated with these bonds on three dates: the date the issuer’s General Assembly decides future capital needs, the publication in the journal of the COB (the stock market board), and the issue date. We find the issuance of index-linked debt has significant positive announcement effects on the issue date, which we attribute to its market-completion property. In order to examine further whether market completion is at play, we decompose the value of the bond at issue into its straight bond and option values. We determine that the bonds are overvalued again supporting market completion. en_US
dc.language.iso en en_US
dc.title Stock index-linked debt and shareholder value en_US
dc.type Article en_US
dc.description.version Published en_US
dc.title.subtitle evidence from the Paris bourse en_US
dc.author.school SOB en_US
dc.author.idnumber 200603708 en_US
dc.author.department Department of Finance and Accounting (FINA) en_US
dc.description.embargo N/A en_US
dc.relation.journal European Financial Management en_US
dc.journal.volume 8 en_US
dc.journal.issue 3 en_US
dc.article.pages 339-356 en_US
dc.keywords Announcement effect en_US
dc.keywords Index-linked debt en_US
dc.keywords Market completion en_US
dc.identifier.doi http://dx.doi.org/10.1111/1468-036X.00192 en_US
dc.identifier.ctation Roberts, G. S., Vijayraghavan, V., & Aintablian, S. (2002). Stock Index‐linked Debt and Shareholder Value: Evidence from the Paris Bourse. European Financial Management, 8(3), 339-356. en_US
dc.author.email sebouh.aintablian@lau.edu.lb en_US
dc.identifier.tou http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.php en_US
dc.identifier.url http://onlinelibrary.wiley.com/doi/10.1111/1468-036X.00192/abstract en_US

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