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On the Listing of Corporate Debt: A Note

Published online by Cambridge University Press:  06 April 2009

Calvin M. Boardman ,
Frederick H. Dark  and
Ronald C. Lease
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Abstract

While the value of listing equity securities has been researched extensively, no studies have examined the market reaction to the decision to list corporate debt. Since the listing of corporate bonds on the major exchanges is a significant corporate activity, this study examines the impact of bond listing on shareholder wealth. Using a variety of possible announcement dates as well as cumulative abnormal returns between dates, no detectable market reaction to debt listing is found. Therefore, the listing of corporate bonds does not appear to be valued by the common shareholders of those same firms.

Type
Research Article
Information
Journal of Financial and Quantitative Analysis , Volume 21 , Issue 1 , March 1986 , pp. 107 - 114
Copyright
Copyright © School of Business Administration, University of Washington 1986

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