search query: @indexterm FINANCIAL THEORY / total: 142
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| Author: | Cornett, M. M. Travlos, N. G. |
| Title: | Information effects associated with debt-for-equity and equity-for-debt exchange offers. |
| Journal: | Journal of Finance
1989 : JUN, VOL. 44:2, p. 451-468 |
| Index terms: | CAPITAL STRUCTURE OF COMPANIES TENDER OFFERS SHARE PRICES FINANCIAL THEORY SECURITY |
| Language: | eng |
| Abstract: | The information effect caused by a firm's change in capital structure via debt-for-equity and equity-for-debt exchange offers is investigated. The evidence suggests that the former transactions lead to abnormal stock price increases, while the latter lead to abnormal stock price decreases. In addition, findings based on analysis of bond returns and cross-sectional regressions do not lend support to the wealth-transfer and tax-effect hypotheses, but they are consistent with the information-effect hypothesis. |
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