Year of Graduation
The Market's Reaction to Changes of Company's Capital Structure through the Issuance of Securities
The purpose of this study is to estimate the reaction of the Russian stock market to the announcement of a change in the capital structure of the company through the issuance of securities. An announcement of an additional issue of ordinary shares and an announcement of placement of non-convertible bonds are taken into account. Using the method of event study analysis it is established that the announcement of the issue of additional shares is perceived negatively by the market and leads to a decrease in the market value of the company's shares. It is also proved that the release of news of the issue of non-convertible bonds has no effect on the profitability of the company's shares. In the final part of the study, with the help of the regression model, factors affecting the three-day cumulative abnormal return around the announcement of an additional issue of shares are identified.