Corporate bonds and stock prices: a coherency analysis in europe
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Date
2020
Journal Title
Journal ISSN
Volume Title
Publisher
İstanbul Ticaret Üniversitesi
Access Rights
info:eu-repo/semantics/openAccess
Abstract
This paper aims to find a coherent relationship between stock prices and bond yields on the day of issue. We show that stock prices seem to have a weak positive relationship with yields as investors seem to consider the underlying health of a firm before investing their money in either security. This contrasts with earlier research and falls in line with later research. The findings show that one percentage increase in share price on date of issue has the potential to raise yields by 0.20% given the near-zero interest environment of the euro.
Description
Keywords
Corporate Bonds, Stock Market, European Market
Journal or Series
International Journal of Commerce and Finance
WoS Q Value
Scopus Q Value
Volume
6
Issue
2
