Irrelevant Answers and Convertible Bond Value Deviation Ratio: Empirical Evidence from Online Roadshows in China

99 Pages Posted: 21 Mar 2024

See all articles by Songsheng Chen

Songsheng Chen

Beijing Institute of Technology

Yuanyuan Yang

Beijing Institute of Technology

Jingjuan Wang

Beijing Institute of Technology

Abstract

Convertible bonds attain the maximum value through their potential conversion into shares of the issuing company. Nevertheless, variations in the value of convertible bonds are common, influenced by a magnitude of factors, such as changes in market interest rates, stock price fluctuations, the financial health of the company, and overall economic conditions. Our evidence suggests during the roadshows for convertible bonds, management’s irrelevant answers may increase the deviation rate of the convertible bond value. If the level of specialization in investors’ inquiries exceeds that of the management’s responses, this positive outcome becomes more pronounced.

Keywords: Irrelevant Answers, External Investors' Questioning Specialization, Management's Answer Specialization, Convertible Bond Value Deviation Ratio

Suggested Citation

Chen, Songsheng and Yang, Yuanyuan and Wang, Jingjuan, Irrelevant Answers and Convertible Bond Value Deviation Ratio: Empirical Evidence from Online Roadshows in China. Available at SSRN: https://ssrn.com/abstract=4768272 or http://dx.doi.org/10.2139/ssrn.4768272

Songsheng Chen

Beijing Institute of Technology ( email )

5 South Zhongguancun street
Center for Energy and Environmental Policy Researc
Beijing, Haidian District 100081
China

Yuanyuan Yang

Beijing Institute of Technology ( email )

5 South Zhongguancun street
Center for Energy and Environmental Policy Researc
Beijing, 100081
China

Jingjuan Wang (Contact Author)

Beijing Institute of Technology ( email )

5 South Zhongguancun street
Center for Energy and Environmental Policy Researc
Beijing, 100081
China

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