FCCBS ISSUE AND WEALTH EFFECTS –A PRECRISIS PERIOD PERSPECTIVE: EVIDENCE FROM INDIAN CORPORATE SECTOR

FCCBs is a fund raising instrument of Indian corporate sector to access the international investors. The various factors associated with FCCBs send positive and negative signal to the market during its issue, which in turn effect on the shareholders wealth. Majority of Indian FCCBs are issued during 2004-2010 in this period the major crisis period of the Indian stock market also falls .In order to avoid overlap possibilities of crisis effect, this study considered only the FCCBs which was issued during 2004 to 2007.We have used event study methodology for the analysis of 151 FCCB issue effects on shareholders wealth and the results shows the negative effect from FCFCCBs issue on shareholders wealth during the pre-crisis period in India