THE INFORMATION CONTENT OF EQUITY-FOR-DEBT SWAPS An Investigation of Analyst Forecasts of Firm Cash Flows*
نویسندگان
چکیده
We demonstrate that analysts revise their forecasts of net operating income downward following the announcement of an equity-for-debt swap. Their revisions are positively correlated with the size of the stock-price reaction to the swap announcement. This evidence supports the hypothesis that announcements of equity-for-debt swaps convey information about the expected level of cash flows of the firm. We also provide evidence that this information is about transitory changes in the expected cash Rows.
منابع مشابه
The investigation of the affectivity of various types of cash flows in a diversified capital structure based on the type of strategy
The intensity of competition in business markets is to the extent that even the slightest strategic mistakes will lead to the failure of the organizations. The lack of knowledge and implementation of appropriate competitive strategies in such markets and, on the other hand, the failure to review the effects of these strategies on the types of cash flows in diverse capital structures is no also ...
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