Market Reacts Strongly to Company's Leverage Increase Announcement in Indonesia Stock Exchange.
The study looked at how the stock market reacts to companies announcing they will increase their debt by issuing bonds. They analyzed bond issuance announcements from 2007 to 2010 using statistical tests. The results showed that there was no significant difference in stock returns before and after the announcements. This suggests that the market did not react strongly to the news of companies increasing their leverage through bond issuance.