Philippine onshore corporate bond issuance: A qualitative response model approach

• Main Authors: Abelardo, Kristine Leir P., Aguinaldo, Lloyd Kingsley T., Chua, Kristin Gayle C., Tan, Sarah Issey
• Format: text
• Language: English
• Published: Animo Repository 2015
• Subjects: Investments > Philippines; Bonds > Philip[pines
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/8041
• Institution: De La Salle University

Corporate bond investments have become one of the best alternatives for investors to raise capital. Aside from buying equities, market participants have also the option to diversify their investment opportunities by accessing the corporate bond market. As the Philippine debt market continues to grow rapidly, comparatively little attention has been paid to the analysis on to what extent will firms probably tap the bond market for greater funding sources. Research on this study investigates the likelihood that firms will issue onshore corporate bonds to the investing public. Out study aims to clearly define the significance of firm size, profitability, leverage, liquidity, years quoted in the stock market, collateral, and bond market size in firms' decision to issue corporate bonds. A probit model is employed to evaluate both firm-specific variables, particularly the size of firm, the length of period a firm is listed in the stock exchange, and a firm's leverage are found to be statistically significant which means that these variables influence the decision for firms to issue corporate bonds to the investing public.