File(s) under permanent embargo
The curious case of converts
journal contribution
posted on 2016-11-01, 00:00 authored by Xiaoyang LiXiaoyang Li, Shannon Lin, Alan L TuckerWe document negative abnormal returns and abnormally high short selling in the trading days immediately before the private placements of U.S. convertible bonds. Issues experiencing greater post-placement short selling have more intense pre-placement short selling. In contrast, there are no pre-placement negative abnormal returns and less pre-placement abnormal short selling for issuers who also engage in share repurchases. Pre-placement findings are related to specific terms of the converts and related buybacks. While other potential explanations exist, the overall weight of the evidence suggests that the most plausible explanation is front-running.
History
Journal
Global finance journalVolume
31Pagination
1 - 17Publisher
ElsevierLocation
Amsterdam, The NetherlandsPublisher DOI
ISSN
1044-0283Language
engPublication classification
C1.1 Refereed article in a scholarly journalCopyright notice
2016, Elsevier Inc.Usage metrics
Categories
No categories selectedLicence
Exports
RefWorks
BibTeX
Ref. manager
Endnote
DataCite
NLM
DC