The pricing of initial public offers of corporate straight debt

Article Abstract:

This study examines the initial-day and aftermarket price performance of corporate straight debt IPOs. We find that IPOs of speculative grade debt are underpriced like equity IPOs, while those rated investment grade are overpriced. IPOs of investment grade debt are typically issued by firms listed on the major exchanges and underwritten by prestigious underwriters. In contrast, junk bond IPOs are more likely to be handled by less prestigious underwriters and are typically issued by OTC firms. Our analysis also reveals that bond rating, market listing of the firm, and investment banker quality are significant determinants of bond IPO returns. (Reprinted by permission of the publisher.)

Prices and rates, Bonds, Bonds (Securities), Going public (Securities), Initial public offerings

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Some evidence on the uniqueness of initial public debt offerings

Article Abstract:

Issues discussed concern the public debt market and corporate financing policy, focusing on the debt structure of corporations. Research finds a negative stock price response to an announcement of a debt initial public offering.

World, Financial Management, Statistical Data Included, Management, Finance, National debt, Corporations, Public debts, Corporate finance

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Managerial stock ownership and the maturity structure of corporate debt

Article Abstract:

A study examining the relationship between managerial stock ownership and corporate debt maturity is presented. The study proves that there is an inverse relationship between the two.

United Kingdom, Science & research, Participative Management, Participatory management, Debt management, Corporate debt

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