Electronic Theses and Dissertations

Date of Award

2019

Document Type

Dissertation

Degree Name

Ph.D. in Business Administration

Department

Finance

First Advisor

Kathleen Fuller

Second Advisor

Tony Ammeter

Third Advisor

Andrew Lynch

Relational Format

dissertation/thesis

Abstract

We explore the bond “clustering” phenomenon, using a sample of bond issuances in 2000-2015. Bond “clustering” is when the number of bonds issued that year exceeds three standard deviations above the mean number of issues for the firm over the sample period. We examine why firms opt for multiple issuances instead of a large one: exhaustion of debt capacity, refunding existing debt, timing favorable market conditions, managing working capital or financing profitable investment opportunities. Results indicate that firms do not cluster due to simply refinancing outstanding debt, but in order to manage their liquidity position and short-tern cash needs, to take advantage of the low interest rates, and to finance profitable investment.

Included in

Finance Commons

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