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Full-Text Articles in Finance and Financial Management
To Call Of Not To Call Convertible Debt, Louis H. Ederington, Gary L. Caton, Cynthia J. Campbell
To Call Of Not To Call Convertible Debt, Louis H. Ederington, Gary L. Caton, Cynthia J. Campbell
Cynthia J. Campbell
This paper tests various theories of the decision on when to call in-the-money convertible bonds by following newly issued convertible bonds over the first ten years of their life and relating the decision to call or not call at each point to the determining characteristics implied by each theory. Our results support the yield advantage and after-tax cash flow hypotheses, as well as a variant of the safety premium hypothesis. We find no evidence to support the signaling hypothesis, and no evidence that the desire to extinguish the bondholder's option is an important element in the call decision.
Private Security Placements And Resales To The Public Under Sec Rule 144, Cynthia J. Campbell
Private Security Placements And Resales To The Public Under Sec Rule 144, Cynthia J. Campbell
Cynthia J. Campbell
This article summarizes the reasons for the popularity of using the private placement market to raise capital, and describes the composition of the private placement market in terms of the types of securities issued and the dollar amounts raised. The typical security issued is debt for an average and median amount of $51 and $24, respectively. Common equity issues are also small, with average and median amounts of $53 and $17, respectively. A description covers the types of securities actually resold into the public financial markets. Predominantly only common equity is resold to the public and the majority of that …
Measuring Abnormal Daily Trading Volumes For Samples Of Nyse/Ase And Nasdaq Securities Using Parametric And Nonparametric Test Statistics, Cynthia J. Campbell
Measuring Abnormal Daily Trading Volumes For Samples Of Nyse/Ase And Nasdaq Securities Using Parametric And Nonparametric Test Statistics, Cynthia J. Campbell
Cynthia J. Campbell
We extend prior research on the empirical properties of daily trading volume and methods to detect abnormal trading volume in two ways. We compare the performance of a nonparametric test statistic with the parametric test statistic used in prior research and we study samples of NASDAQ securities as well as samples of NYSE/ASE securities. Prior research has focused exclusively on NYSE securities. We find the nonparametric test statistic is more powerful in detecting abnormal trading volume than the parametric test statistic in both samples of NYSE/ASE and NASDAQ securities. We also document that abnormal trading volume will be detected more …
Measuring Security Price Perfonnance Using Daily Returns: Issues Associated With Using Nasdaq Securities, Cynthia J. Campbell, Charles E. Wasley
Measuring Security Price Perfonnance Using Daily Returns: Issues Associated With Using Nasdaq Securities, Cynthia J. Campbell, Charles E. Wasley
Cynthia J. Campbell
This study addresses issues that arise when using daily NASDAQ security returns in event studies. Its objective is to provide benchmarks for assessing the impact of alternative research design choices. The results indicate that test statistics commonly used in event studies are subject to varying degrees of misspecification in samples of NASDAO securities. Misspecification is most severe for traditional z-statistics based on standardized abnormal returns. Across a wide variety of event study settings the rank statistic introduced in Corrado (1989) is consistently well-specified and quite powerful in detecting abnormal performance.