We examine the stock market effects of the announcement and issuance of convertible bonds by European companies, conditional on the extent to which the issuers are covered by equity analysts. While there is no significant market reaction to the issue itself, its first announcement is associated with significant negative abnormal returns. However, we find that abnormal returns are less negative for firms with higher equity analyst following, which suggests that the analysts' monitoring activities improve the information environment surrounding the convertible bond issues. Moreover, this effect is significantly stronger after the implementation date of the European Markets in Financial Instruments Directive (MiFID) in the issuer's home country, indicating a further improvement in the information environment after the regulation came into effect.

中文翻译：

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分析师越多越好吗？可换股债券公告效果的情况


我们研究了欧洲公司宣布和发行可转换债券对股票市场的影响，条件是股票分析师对发行人的覆盖程度。虽然市场对该问题本身没有重大反应，但其首次公告与显着的负异常回报有关。然而，我们发现，对于股票分析师关注度较高的公司，异常回报的负面影响较小，这表明分析师的监控活动改善了围绕可转换债券发行的信息环境。此外，在欧洲金融工具市场指令 （MiFID） 在发行人母国实施后，这种影响明显增强，表明该法规生效后信息环境进一步改善。