Systematic risk variations (beta) convertible debenture brazilian companies
purpose of this article is to analyze the impact of issuing convertible debentures on the systematic risk of Brazilian companies. Some applied researches in the U.S. capital market (STEIN, 1992; LEWIS et al, 2002; RAI, 2005) indicate that convertible debentures may be used as an alternative financin...
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| Format: | Article |
| Language: | English |
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FUCAPE Business School
2010-01-01
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| Series: | BBR: Brazilian Business Review |
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| Online Access: | http://www.redalyc.org/articulo.oa?id=123021649001 |
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| author | Renata Drumond Pinto Coelho Antonino Wagner Moura Lamounier Roberto Kaehler de Albuquerque Maranhão |
| author_facet | Renata Drumond Pinto Coelho Antonino Wagner Moura Lamounier Roberto Kaehler de Albuquerque Maranhão |
| author_sort | Renata Drumond Pinto Coelho Antonino |
| collection | DOAJ |
| description | purpose of this article is to analyze the impact of issuing convertible debentures on the systematic risk of Brazilian companies. Some applied researches in the U.S. capital market (STEIN, 1992; LEWIS et al, 2002; RAI, 2005) indicate that convertible debentures may be used as an alternative financing source when adverse selection problem makes stock issuing unattractive financing source. The analysis of Brazilian companies that issued convertible debentures recorded in the period from 1998 to 2006 and that presented liquidity on the market indicated that variation in beta, on average, is positive. These results are coherent with the signaling hypothesis and with the absence of convertible debenture issuing in 2005 and 2006 on the Brazilian market. They also may be related to the precarious financial situation of issuing companies, observed by the analysis of some financial indicators in year of issue and in two pre- e post-issuing years. |
| format | Article |
| id | doaj-art-36eaa1c22e4f4ac3be9b07fce3628f2e |
| institution | Kabale University |
| issn | 1807-734X |
| language | English |
| publishDate | 2010-01-01 |
| publisher | FUCAPE Business School |
| record_format | Article |
| series | BBR: Brazilian Business Review |
| spelling | doaj-art-36eaa1c22e4f4ac3be9b07fce3628f2e2025-02-06T23:39:29ZengFUCAPE Business SchoolBBR: Brazilian Business Review1807-734X2010-01-0173122Systematic risk variations (beta) convertible debenture brazilian companiesRenata Drumond Pinto Coelho AntoninoWagner Moura LamounierRoberto Kaehler de Albuquerque Maranhãopurpose of this article is to analyze the impact of issuing convertible debentures on the systematic risk of Brazilian companies. Some applied researches in the U.S. capital market (STEIN, 1992; LEWIS et al, 2002; RAI, 2005) indicate that convertible debentures may be used as an alternative financing source when adverse selection problem makes stock issuing unattractive financing source. The analysis of Brazilian companies that issued convertible debentures recorded in the period from 1998 to 2006 and that presented liquidity on the market indicated that variation in beta, on average, is positive. These results are coherent with the signaling hypothesis and with the absence of convertible debenture issuing in 2005 and 2006 on the Brazilian market. They also may be related to the precarious financial situation of issuing companies, observed by the analysis of some financial indicators in year of issue and in two pre- e post-issuing years.http://www.redalyc.org/articulo.oa?id=123021649001hybrid titlesconvertible debenturessystematic risk (beta)adverse selectionsignaling |
| spellingShingle | Renata Drumond Pinto Coelho Antonino Wagner Moura Lamounier Roberto Kaehler de Albuquerque Maranhão Systematic risk variations (beta) convertible debenture brazilian companies BBR: Brazilian Business Review hybrid titles convertible debentures systematic risk (beta) adverse selection signaling |
| title | Systematic risk variations (beta) convertible debenture brazilian companies |
| title_full | Systematic risk variations (beta) convertible debenture brazilian companies |
| title_fullStr | Systematic risk variations (beta) convertible debenture brazilian companies |
| title_full_unstemmed | Systematic risk variations (beta) convertible debenture brazilian companies |
| title_short | Systematic risk variations (beta) convertible debenture brazilian companies |
| title_sort | systematic risk variations beta convertible debenture brazilian companies |
| topic | hybrid titles convertible debentures systematic risk (beta) adverse selection signaling |
| url | http://www.redalyc.org/articulo.oa?id=123021649001 |
| work_keys_str_mv | AT renatadrumondpintocoelhoantonino systematicriskvariationsbetaconvertibledebenturebraziliancompanies AT wagnermouralamounier systematicriskvariationsbetaconvertibledebenturebraziliancompanies AT robertokaehlerdealbuquerquemaranhao systematicriskvariationsbetaconvertibledebenturebraziliancompanies |