Chang, Shao-Chi; Chen, Sheng-Syan; Hsing, Ailing; … - In: Review of Quantitative Finance and Accounting 28 (2007) 2, pp. 123-145
This paper examines the role of investment opportunities and free cash flow in explaining the source of the stock valuation effects of secured debt offerings. We find a significantly positive relation between a firm's investment opportunities and its stock price response to announcements of...
