The Effect of Corporate Capital Investment Changes on the Wealth of Nonconvertible Bondholders and Convertible Bondholders

Abstract

過去的研究已提供實證結果，認為公司資本支出的變動，符合股東財富極大化的假設 McConnell and Muscarella(1985)，McCnnell and Nantell(1985)，及Woolridge and Snow(1990)，但是並沒有任何研究針對債權人財富的影響來探討。此篇論文即針對公司資本支出對普通公司債持有人及可轉換公司債持有人之財富效果來探討：本研究並沒有發現財富移轉的證據，如果普通公司債與可轉換公司債一起觀察的話、本研究發現有證據支持訊息效果的假設。

Although prior studies showed the evidence that shareholders g ained (lost) as a result of increases (decreases) in capital investment McConnell and Muscarella (1985), McConnell and Nantell (1985), and Woolridge and Snow (1990), there is no study examining the impact of corporate capital investment changes on the wealth of bondholders. This paper empirically examines the wealth impacts of bondholders in response to changes in capital investment decisions. Our results indicated that nonconvertible bondholders did not significantly benefit from the information revealed by managers, while significant excess return is associated with convertible bond issues. Conversely, our results indicated that bondholders suffered significant negative excess return when the firms announced decreases in capital investment. These results indicated the presence of information effect, but finds noo evidence of wealth transfer effect.