PT - JOURNAL ARTICLE AU - Simon Wolfe AU - Stavros Daliakopoulos AU - Owain AP Gwilym TI - Equity Valuation Effects of the Issuance of Convertible Bonds AID - 10.3905/jfi.1999.319224 DP - 1999 Dec 31 TA - The Journal of Fixed Income PG - 7--18 VI - 9 IP - 3 4099 - https://pm-research.com/content/9/3/7.short 4100 - https://pm-research.com/content/9/3/7.full AB - The article compares the equity valuation effects of the convertible bonds, straight debt, and common equity offerings in the U.K. market. Our results on announcement dates are similar to those of studies in the U.S. in several respects. Convertible bond offerings have a significant negative impact on the underlying stock price; straight debt offerings are accompanied by a small negative stock price reaction; and rights issues have significantly negative valuation effects. A result that is at variance with U.S. results is that we find no stock price reaction on the issue date of convertible bonds.