Short Selling Activities and Convertible Bond Arbitrage Empirical Ev
While some short sales are based on information or opinions about a firm’s share price, this is not the case with many others. This statement coincides with the increasing use of arbitrage-related hedge fund strategies whereas it collides with public cons
- PDF / 1,780,384 Bytes
- 269 Pages / 419.527 x 595.275 pts Page_size
- 67 Downloads / 169 Views
GABLER RESEARCH EBS Forschung Schriftenreihe der European Business School (EBS) International University · Schloss Reichartshausen Herausgegeben von Univ.-Prof. Ansgar Richter, PhD
Band 75
Die European Business School (EBS) – gegründet im Jahr 1971 – ist Deutschlands älteste private Wissenschaftliche Hochschule für Betriebswirtschaftslehre im Universitätsrang. Dieser Vorreiterrolle fühlen sich ihre Professoren und Doktoranden in Forschung und Lehre verpflichtet. Mit der Schriftenreihe präsentiert die European Business School (EBS) ausgewählte Ergebnisse ihrer betriebs- und volkswirtschaftlichen Forschung.
Sebastian P. Werner
Short Selling Activities and Convertible Bond Arbitrage Empirical Evidence from the New York Stock Exchange With a foreword by Prof. Dr. Lutz Johanning
RESEARCH
Bibliographic information published by the Deutsche Nationalbibliothek The Deutsche Nationalbibliothek lists this publication in the Deutsche Nationalbibliografie; detailed bibliographic data are available in the Internet at http://dnb.d-nb.de.
Dissertation European Business School, International University Schloss Reichartshausen, Oestrich-Winkel, 2009 D 1540
1st Edition 2010 All rights reserved © Gabler Verlag | Springer Fachmedien Wiesbaden GmbH 2010 Editorial Office: Ute Wrasmann | Britta Göhrisch-Radmacher Gabler Verlag is a brand of Springer Fachmedien. Springer Fachmedien is part of Springer Science+Business Media. www.gabler.de No part of this publication may be reproduced, stored in a retrieval system or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the copyright holder. Registered and/or industrial names, trade names, trade descriptions etc. cited in this publication are part of the law for trade-mark protection and may not be used free in any form or by any means even if this is not specifically marked. Umschlaggestaltung: KünkelLopka Medienentwicklung, Heidelberg Printed on acid-free paper Printed in Germany ISBN 978-3-8349-1886-4
V
Foreword The main cause of financial crisis may be found in the over-optimistic investing of buyers that leads market prices away from fundamental values. However, in the aftermath of “excess” when stock markets tumble, it is usually the pessimists or short sellers who get publicly blamed. Despite the longstanding controversy on short selling activities, this market instrument remains a widely misunderstood concept by the public while it is an essential tool used by hedge funds for speculation and arbitrage. That is why it is important to investigate short selling for its different motivations and the resulting effect on stock returns, a subject whose empirical study is in its infancy. In his doctoral thesis, Sebastian examines convertible bond arbitrage, which is a typical hedge fund strategy that involves a long position in a convertible bond and a significant short position in the underlying stock. The short selling is employed as a hedge against movements in the stock price. With every
Data Loading...
