Corporate Bonds and Stock Prices: A Coherency Analysis in Europe

Arif Buda, Hüseyin Özdeser, Andisheh Saliminezhad

Abstract


This paper aims to find a coherent relationship between stock prices and bond yields on the day of issue. We show that stock prices seem to have a weak positive relationship with yields as investors seem to consider the underlying health of a firm before investing their money in either security. This contrasts with earlier research and falls in line with later research. The findings show that one percentage increase in share price on date of issue has the potential to raise yields by 0.20% given the near-zero interest environment of the euro.


Keywords


Corporate Bonds, Stock Market, European Market

Full Text:

PDF


 

Indexing and Abstracting Services

                                                         
 

Other Sources and Services

       
 

License

Creative Commons License
International Journal of Commerce and Finance is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 4.0 Unported License.
 

Mailing Address

  International Journal of Commerce and Finance
Küçükyalı E-5 Kavşağı, İnönü Caddesi, No: 4
Küçükyalı, Maltepe, İSTANBUL, TURKEY
E-mail : ecivelek@ticaret.edu.tr