Debt Securities Issuance in Malaysia: Type of Security and Impact on Equity Returns, Systematic and Total Risk

The study examines the association of company characteristics with debt securities offers and explores whether there is any significant difference between hybrid and non-hybrid debt securities issuers. In addition, the study investigates the impact of debt securities issuance on the equity market be...

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Main Author:	Chin, Sze Kim
Format:	Thesis
Language:	eng eng
Published:	2010
Subjects:	HG Finance
Online Access:	https://etd.uum.edu.my/2408/1/Chin_Sze_Kim.pdf https://etd.uum.edu.my/2408/2/1.Chin_Sze_Kim.pdf
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id	my-uum-etd.2408
record_format	uketd_dc
spelling	my-uum-etd.24082019-11-12T01:26:25Z Debt Securities Issuance in Malaysia: Type of Security and Impact on Equity Returns, Systematic and Total Risk 2010 Chin, Sze Kim Abdullah, Nur Adiana Hiau College of Business (COB) College of Business HG Finance The study examines the association of company characteristics with debt securities offers and explores whether there is any significant difference between hybrid and non-hybrid debt securities issuers. In addition, the study investigates the impact of debt securities issuance on the equity market behaviour of the issuers. The regression result found a positive and significant association for company size but negative association for managerial ownership structure with debt securities issuance. Subsequently, using logistic regression techniques, the study revealed that companies with higher profitability and higher managerial ownership appear to favour non-hybrid debt securities to hybrid debt securities. Nonetheless, the study found no significant difference between hybrid and non-hybrid debt securities issuers in terms of company size, asset tangibility and growth opportunities. The event study results reveal that overall debt securities issuers experience increase in company return following the debt securities issuance and decrease in systematic risk while total risk remain unchanged. Hybrid debt securities experience significant fall in stock returns and systematic risk but an increase in total risk. Non-hybrid debt securities issues, however, are found to have no impact on equity market behaviour. Findings of the study imply the need to promote participation from financially strong companies in the hybrid debt securities segment. Further, the decline in systematic risk for debt securities issuing companies could motivate the issuance of debt securities and thus improve the market liquidity. Finally, non-hybrid debt securities are not appropriate to be used for market signal as no impact on market behaviour was found following the non-hybrid debt securities issuance. 2010 Thesis https://etd.uum.edu.my/2408/ https://etd.uum.edu.my/2408/1/Chin_Sze_Kim.pdf application/pdf eng validuser https://etd.uum.edu.my/2408/2/1.Chin_Sze_Kim.pdf application/pdf eng public http://sierra.uum.edu.my/record=b1222271~S1 dba dba Universiti Utara Malaysia
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng
advisor	Abdullah, Nur Adiana Hiau
topic	HG Finance
spellingShingle	HG Finance Chin, Sze Kim Debt Securities Issuance in Malaysia: Type of Security and Impact on Equity Returns, Systematic and Total Risk
description	The study examines the association of company characteristics with debt securities offers and explores whether there is any significant difference between hybrid and non-hybrid debt securities issuers. In addition, the study investigates the impact of debt securities issuance on the equity market behaviour of the issuers. The regression result found a positive and significant association for company size but negative association for managerial ownership structure with debt securities issuance. Subsequently, using logistic regression techniques, the study revealed that companies with higher profitability and higher managerial ownership appear to favour non-hybrid debt securities to hybrid debt securities. Nonetheless, the study found no significant difference between hybrid and non-hybrid debt securities issuers in terms of company size, asset tangibility and growth opportunities. The event study results reveal that overall debt securities issuers experience increase in company return following the debt securities issuance and decrease in systematic risk while total risk remain unchanged. Hybrid debt securities experience significant fall in stock returns and systematic risk but an increase in total risk. Non-hybrid debt securities issues, however, are found to have no impact on equity market behaviour. Findings of the study imply the need to promote participation from financially strong companies in the hybrid debt securities segment. Further, the decline in systematic risk for debt securities issuing companies could motivate the issuance of debt securities and thus improve the market liquidity. Finally, non-hybrid debt securities are not appropriate to be used for market signal as no impact on market behaviour was found following the non-hybrid debt securities issuance.
format	Thesis
qualification_name	Doctor of Business Administration (DBA)
qualification_level	Doctorate
author	Chin, Sze Kim
author_facet	Chin, Sze Kim
author_sort	Chin, Sze Kim
title	Debt Securities Issuance in Malaysia: Type of Security and Impact on Equity Returns, Systematic and Total Risk
title_short	Debt Securities Issuance in Malaysia: Type of Security and Impact on Equity Returns, Systematic and Total Risk
title_full	Debt Securities Issuance in Malaysia: Type of Security and Impact on Equity Returns, Systematic and Total Risk
title_fullStr	Debt Securities Issuance in Malaysia: Type of Security and Impact on Equity Returns, Systematic and Total Risk
title_full_unstemmed	Debt Securities Issuance in Malaysia: Type of Security and Impact on Equity Returns, Systematic and Total Risk
title_sort	debt securities issuance in malaysia: type of security and impact on equity returns, systematic and total risk
granting_institution	Universiti Utara Malaysia
granting_department	College of Business (COB)
publishDate	2010
url	https://etd.uum.edu.my/2408/1/Chin_Sze_Kim.pdf https://etd.uum.edu.my/2408/2/1.Chin_Sze_Kim.pdf
_version_	1747827338221977600

Debt Securities Issuance in Malaysia: Type of Security and Impact on Equity Returns, Systematic and Total Risk

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