| Author: | Hopkins, P. |
| Title: | The effect of financial statement classification of hybrid financial instruments on financial analysts' stock price judgments |
| Journal: | Journal of Accounting Research
1997 : VOL. 34, p. 33-50 |
| Index terms: | AUTOMOBILE ASSOCIATION RESEARCH FINANCIAL STATEMENTS |
| Language: | eng |
| Abstract: | This paper investigates whether the balance sheet classification of financial instruments that include attributes of both debt and equity (i.e. , hybrid financial instruments) affects the stock price judgments of buy-side financial analysts. Financial economics research documents that, on average, firms announcing an offering of additional common equity securities experience a decline in the market value of their outstanding common stock. In contrast, firms financing with straight debt generally do not experience a decline in common stock market value. |
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