Timur Syzdykov
FIN 160
Andrew Spieler
February 5, 2024
Event Study Proposal
Topic: Impact on the company’s stock price due to issuance of bond by publicly traded
companies.
Hypothesis: Investors view the issuance of bonds from a public company as a positive sign. That
is, we can assume when a company issues bonds, this company has great prospects for growth
and it has strong financial health, accordingly the stock price rise. Also, in this event study will
be analysis of how different bond affect stock price.
Description of Data: WRDS (Wharton Research Data Services), Yahoo Finance, Fidelity.com,
EdwardJones.com, Newswire, and others are a few examples of data sources. Information about
the bonds will be gathered from the following sources: Firm SEC filings, which comprise proxy
statements, 8k reports, 10k reports, 10Q reports, Registration Statements, etc. After that, data will
be entered into Excel to record findings.
Sample construction:
1. Define the Event: Clearly state events that will be the subject of the study.
2. Select Limitations: State any restrictions or limits of the research, such as sample size,
data accessibility, or any confounding variables.
3. Data Collection: List the resources and techniques used to get pertinent data, such as
stock prices, press releases from the company, and any other information that is required.
4. Market Model Specification: Describe the market model, including the choice of
benchmark index and any extra variables to be included in the model.
5. Estimate Abnormal Returns: Using the market model, determine the abnormal returns for
the event period. These returns are those that cannot be accounted by changes in the
market.
6. Statistical Analysis: Run statistical analyses to evaluate the overall effect of the event on
stock prices and ascertain the significance of the anomalous returns.
7. Sensitive Analysis: Use sensitivity analysis to evaluate how resilient the findings are to
various model assumptions or specifications.
8. Interpret Results: Discuss the study's findings and the event's impact on stock prices.
Sample company event: Wisconsin Power and Light Company Prices Public Offering of Green
Bonds. The $300 million aggregate principal amount of 4.950% debentures in Wisconsin Power
and Light Company, a wholly owned subsidiary of Alliant Energy Corporation, has been priced
for public offering. The date of the debentures due April 1, 2033. Development and acquisition of
solar power generating units will receive funding equivalent to or more than the net proceeds from
this transaction.
Source: https://www.nasdaq.com/press-release/wisconsin-power-and-light-company-pricespublic-offering-of-green-bonds-2022-08-08