Does Contingent Convertible Bonds Impact Stock Prices? An Empirical Analysis On Stocks.

Authors

  • B.Navya ,Dr VISWANATHAN THANGARAJ

Abstract

After-effects of the financial crisis led to financial institutions to search for a convertible financial instrument along with strong capital structure. This led to the invention of convertible instruments which can be converted to equity on trigger mechanisms. This paper deals with models to check the volatility of the stock prices of a company depending on the type of contingent convertible bonds issued by them. We also see the generalized autoregressive conditional heteroskedasticity (GARCH) model to see the volatility of the stock prices for the period.

Published

2020-11-01

Issue

Section

Articles