Announcement effects of convertible bond loans versus warrant-bond loans: An empirical analysis for the Dutch market



12

Table 1: Stock price reactions to the announcement of convertible bond and warrant-bond
offerings
.

Study

Security

Research
period

Observations

Cumulative
average
abnormal
return
(-1,0)

- Dann/Mikkel-
son (1984)

Convertible bonds

1970-1979

132

-2.31%**

- Mikkelson/

Partch (1986)

Convertible bonds

1972-1982

33

-1.97%**

- Eckbo (1986)a

Convertible bonds

1964-1981

75

-1.25%**

- Brennan/

Her (1993)

Convertible bonds

1976-1985

155

-2.20%**

- Long/Sefcik

Convertible bonds

1965-1984

134

-0.61%**

(1990)

Warrant-bonds

1965-1984

54

-1.59%**

- Billingsley

Convertible bonds

1971-1986

104

-2.04%**

et. al. (1990)

Warrant-bonds

1971-1986

38

-0.33%

- Jayaraman

et. al. (1990)

Warrant-bonds

1977-1986

54

-0.64%

a

*

**


average abnormal return for the first announcements of the issues;

reported by the authors as being significant at the 5%-level;

reported by the authors as being significant at the 1%-level.



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