Wealth effects of convertible bond and convertible preference share issues: an empirical analysis of the UK market

Article Abstract:

Firm value is negatively affected by the issue of three types of convertible securities, namely convertible bonds, convertible capital bonds and convertible preference shares. Of the three types of convertible securities, convertible capital bonds exhibit the largest and most negative reaction. With regards to convertible preferred shares, aligning the interests of common stockholders with those of senior security holders enables the information effects to dominate any beneficial effects from lessening agency costs.

Open-End Investment Funds, Management investment, open-end, Money Market Invest Funds, United Kingdom, Mutual fund industry, Convertible bonds, Convertible securities, Money market funds, Convertible preferred stocks

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Nonshareholder constituency statues and shareholder wealth: a note

Article Abstract:

Nonshareholder constituency statutes create a slight adverse effect on the assets of a shareholder for firms that does not have antitakeover charter amendments. The legislation, which broadens the duties of director to other constituents, affects firms that are located in states where the said statutes exist. Shareholders of companies that are not managed well are found to lose more from the implementation of a law that decreases the chance of a succesful takeover.

Other Justice, Public Order, and Safety Activities, Asset & Risk Management, Business Law NEC, Analysis, Interpretation and construction, Economic aspects, Acquisitions and mergers, Law, Profits, Political aspects, Commercial law, Legislative power, Fiduciary duties, Corporate profits

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Wealth effects of asset securitization

Article Abstract:

A study is conducted to examine the impact of asset securitization on a firm's ability to create wealth for its shareholders. It tests the hypotheses that wealth effects from securitization vary according to industry, the financial slack status of the issuing company and the type of asset being securitized. The study also tests the proposition that securitized assets affect the issuing company's market and interest rate risk. Findings are discussed.

Corporations, Asset-backed securities, Asset backed securities

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