Some Evidence on the Uniqueness of Initial Public Debt Offerings

摘要

Debt initial public offerings (IPOs) represent a major shift in a firm's financing policy by both extending debt maturity and altering the public-private debt mix. In contrast to findings for seasoned debt offerings, we document a significantly neg- ative stock price response to debt IPO announcements. This result is consistent with debt maturity and debt ownership structure theories. The equity wealth ef- fect is negatively related to the offer's maturity, and positively related to the de- gree of bank monitoring. We find that firms with less information asymmetry and firms with higher growth opportunities experience a less adverse stock price repsone.