Initial Public Offer (IPO) in the new regime (which started as an innovation) has to be mandatorily graded by a Credit Rating Agency (CRA). This optimization of the IPO by the Securities and Exchange Board of India (SEBI) has been seen as a market innovation to ensure the credibility of the...

This article examines the potential impact of capital supply on security issuance. We focus on the role of convertible bond arbitrageurs as suppliers of capital to convertible bond issuers. We estimate a simultaneous equations model of demand and supply of convertible bond capital, linking the...

We document issuance overpricing of corporate debt securities in China, which contrasts with underpricing of equity and debt securities in Western countries. The phenomenon in China is robust across subsamples of issuances with different credit ratings, maturities, issuer types, and issuing...

Credit spreads for secured debt are lower than for unsecured debt, especially when a firm’s credit quality deteriorates, the economy slows, or average credit spreads widen. Yet investment grade firms tend to be reluctant to issue secured debt at all times. In contrast, we find that for firms...

In recent years, much attention has been paid to CEO succession planning as a risk management issue. However, it is not clear what information the company should disclose on this matter or how extensive the disclosure should be. This is particularly true when it comes to companies whose CEOs are...

Legal investor protection is associated with how firms choose to issue shares. The likelihood of private placements relative to rights offerings increases with investor protection, as does the likelihood of public offerings relative to both private placements and rights offerings. These findings...

On July 7, 2010 the Agricultural Bank of China Limited announced the share price of its initial public offering (IPO) for the Chinese domestic market on the Shanghai Stock Exchange at a price of Rmb 2.68. It just so happens that the number 68 reminds Chinese speakers of a prosperous life. The...