FCCBS Issue and Wealth Effects – A Precrisis Period Perspective: Evidence From Indian Corporate Sector

Journal of Management, 6(6), 2019, pp. 23-28.

6 Pages Posted: 22 Feb 2020

See all articles by Sayyad Ameen Ahammad

Sayyad Ameen Ahammad

Mangalore University, Department of Business Administration

T. Mallikarjunappa

Mangalore University

Date Written: January 25, 2020

Abstract

FCCBs is a fund raising instrument of Indian corporate sector to access the international investors. The various factors associated with FCCBs send positive and negative signal to the market during its issue, which in turn effect on the shareholders wealth. Majority of Indian FCCBs are issued during 2004-2010 in this period the major crisis period of the Indian stock market also falls. In order to avoid overlap possibilities of crisis effect, this study considered only the FCCBs which was issued during 2004 to 2007.We have used event study methodology for the analysis of 151 FCCB issue effects on shareholders wealth and the results shows the negative effect from FCFCCBs issue on shareholders wealth during the pre-crisis period in India.

Keywords: FCCBs, Wealth, Pre-crisis, Shareholders, Event study

Suggested Citation

Ahammad, Sayyad Ameen and Mallikarjunappa, T., FCCBS Issue and Wealth Effects – A Precrisis Period Perspective: Evidence From Indian Corporate Sector (January 25, 2020). Journal of Management, 6(6), 2019, pp. 23-28., Available at SSRN: https://ssrn.com/abstract=3525257

Sayyad Ameen Ahammad (Contact Author)

Mangalore University, Department of Business Administration ( email )

India

T. Mallikarjunappa

Mangalore University ( email )

Mangalagangotri
Mangalore - Dakshina Kannada
Mangalagangothri - 574 119, D.K. Karnataka 574199
India

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