The Performance of Long‐run Stock Returns Following Issues of Public and Private Debt
用资产负债表方法识别公共和私人债务发行，发现普通债务发行后无异常回报，但可转换债务发行者在随后五年内跑输市场50%-70%，部分原因是其预示未来盈利能力下降。
This study uses a balance sheet‐based method to identify both public and private debt issues. This feature is important because there have been no studies of the information content of private debt issues, while private debt is substantially more prevalent than public debt. We find no abnormal returns following straight debt issues. However, convertible debt issuers under‐perform the market on the order of 50 to 70 percent in the following five years. In pursuit of explanations, we find that convertible debt issues signal a deterioration of future profitability, which accounts for at least part of the stock price underperformance.