Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
1018918 | Journal of Business Research | 2009 | 4 Pages |
Abstract
This paper analyzes the factors that influence the issuing price of debentures in Brazil in the period from year 2000 to 2004, applying a factor model, in which exogenous variables explain return and price behavior. The variables in this study include: rating, choice of index, maturity, country risk, basic interest rate, long-term and short-term rate spread, the stock market index, and the foreign exchange rate. Results indicate that the index variable, probability of default and bond's maturity influence pricing and points out associations of long-term bonds with better rating issues.
Keywords
Related Topics
Social Sciences and Humanities
Business, Management and Accounting
Business and International Management
Authors
Eduardo Vieira dos Santos Paiva, José Roberto Ferreira Savoia,