Stock market reaction to debt financing arrangements in Russia

Arbeitspapier

This paper investigates stock market reaction to debt arrangements in Russia. The analysis of the valuation of debt arrangements by stock markets provides information about the use of debt by Russian companies. We apply the event study methodology to check whether debt announcements lead to abnormal returns using a sample of Russian listed companies that issued syndicated loans or bonds between June 2004 and December 2008. We find a negative reaction of stock markets to debt arrangements that can be explained by moral hazard behavior of shareholders at the expense of debtholders. Further, we observe no significant difference between announcements of syndicated loans and bonds. Thus, our findings support the view that Russian companies could have incentives to limit their reliance on external debt.

Angaben zum Objekt

• ISBN: 978-952-462-691-0
• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: BOFIT Discussion Papers ; No. 16/2010

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Information and Market Efficiency; Event Studies; Insider Trading ; Financial Institutions and Services: General ; Socialist Institutions and Their Transitions: General
• Thema: corporate bonds ; event study ; Russia ; stock returns ; syndicated loans

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Godlewski, Christophe J. ; Fungáčová, Zuzana ; Weill, Laurent
• Ereignis: Veröffentlichung
• (wer): Bank of Finland, Institute for Economies in Transition (BOFIT)
• (wo): Helsinki
• (wann): 2010

Weitere Informationen

• Handle: http://hdl.handle.net/10419/212684
• Letzte Aktualisierung: 10.03.2025, 11:43 MEZ