Show simple item record

dc.contributor.authorTewari, Manish
dc.contributor.authorRamanlal, Pradipkumar
dc.date.accessioned2021-09-07T17:31:28Z
dc.date.available2021-09-07T17:31:28Z
dc.date.issued2010-01-01
dc.identifier.citationTewari, M. & Ramanlal, P. (2010). Is the Put Option in U.S. Structured Bonds Good for Both Bondholders and Stockholders? International Research Journal of Finance and Economics, 52, 50-59.
dc.identifier.urihttp://hdl.handle.net/20.500.12648/2113
dc.description.abstractThe recent financial crisis has brought into spotlight various financially engineered products, their design parameters, and the impact of these design parameters on the bondholders and the common stockholders. We analyze the common stock performance of 134 firms issuing the callable-puttable bonds, a structured derivative security, issued between 1977 and 2005. We focus our study on the common stock performance of the issuing firms around the issue date and the put date. We use the Fama French (1993) four factor regression model to estimate the common stock performance of the issuing firms two years before and after the issue and the put date. We find that these firms underperform the market throughout. The firms perform worse after the issue date but improve their performance as we get closer to the put date. We find strong evidence that the presence of the put option in these securities provides protection to the bondholders as well as improved returns to the common stockholders. The deferred put option can mitigate the agency problem between the stockholders and the bondholders.
dc.subjectBonds
dc.subjectCallable
dc.subjectPuttable
dc.subjectPerformance
dc.subjectCommon Stock
dc.subjectLong Run
dc.subjectEvent Study
dc.titleIs the Put Option in U.S. Structured Bonds Good for Both Bondholders and Stockholders?
dc.typearticle
dc.source.journaltitleInternational Research Journal of Finance and Economics
dc.source.issue52
refterms.dateFOA2021-09-07T17:31:28Z
dc.description.institutionSUNY Brockport
dc.source.peerreviewedTRUE
dc.source.statuspublished
dc.description.publicationtitleBusiness-Economics Faculty Publications
dc.contributor.organizationThe College at Brockport
dc.contributor.organizationUniversity of Central Florida
dc.languate.isoen_US


Files in this item

Thumbnail
Name:
bus_facpub/1/fulltext (1).pdf
Size:
113.6Kb
Format:
PDF

This item appears in the following Collection(s)

Show simple item record