publication . Article . 2010

Systematic risk variations (beta) convertible debenture brazilian companies

Renata Drumond Pinto Coelho Antonino; Wagner Moura Lamounier; Roberto Kaehler de Albuquerque Maranhão;
Open Access
  • Published: 30 Dec 2010 Journal: Brazilian Business Review, volume 7, pages 1-23 (eissn: 1808-2386, Copyright policy)
  • Publisher: Fucape Business School
Abstract
The 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 ...
Subjects
free text keywords: Systematic risk, Capital market, Market liquidity, Advertising, Convertible bond, Adverse selection, Financial system, Debenture, Convertible, Business, Beta (finance), HF5001-6182
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publication . Article . 2010

Systematic risk variations (beta) convertible debenture brazilian companies

Renata Drumond Pinto Coelho Antonino; Wagner Moura Lamounier; Roberto Kaehler de Albuquerque Maranhão;