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Pollution control revenue bond sales and public utility share prices
Journal article   Peer reviewed

Pollution control revenue bond sales and public utility share prices

Raj Varma and Samuel H. Szewczyk
Journal of business research, v 21(2)
1990

Abstract

This article examines the effect of pollution control revenue bond offerings on public utility common stock prices. These securities provide a unique case in which public utilities were permitted to issue a limited quantity of debt offerings investors an income stream exempt from federal taxes with the proceeds from the issue targeted for a specific capital investment. Significant negative stock price effects are reported around the announcement of these securities. However, the stock price response to pollution control revenue bond sales is more favorable than that reported in earlier studies for straight debt offerings used to finance a utility's investment program.

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Collaboration types
Domestic collaboration
Web of Science research areas
Business
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