Związki rynkowej wyceny akcji i obligacji zamiennych na akcje – analiza sektorowa na giełdzie papierów wartościowych w Tel Awiwie
Shares and convertible bonds market valuation relation − sector analysis on the Tel Aviv Stock Exchange

Summary/Abstract: Convertible bonds can be an attractive form of financing of companies combining the features of equity and debt. However, the convertible bond market research does not always confirm that the instrument is a simple combination of coupon bond with a free call option. The article is focused on the analysis of relation between equity and convertible bonds markets. Empirical research was based on data from the Tel Aviv Stock Exchange. The discussion was focused primarily on convertible bonds and shares price changes. The results suggest that despite the universal features of market valuation of shares and convertible bonds of the same entity, the specificities of the capital market on which they are quoted may be a key factor in determining the relationship between the two valuations.

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