caa a22 4500 463187709 CHVBK 20180406164858.0 cr unu---uuuuu 170326e20070201xx s 000 0 eng 10.1007/s11156-006-0007-6 doi (NATIONALLICENCE)springer-10.1007/s11156-006-0007-6 Investment opportunities, free cash flow, and stock valuation effects of secured debt offerings [Elektronische Daten] [Shao-Chi Chang, Sheng-Syan Chen, Ailing Hsing, Chia Huang] This paper examines the role of investment opportunities and free cash flow in explaining the source of the stock valuation effects of secured debt offerings. We find a significantly positive relation between a firm's investment opportunities and its stock price response to announcements of secured debt issues. This evidence supports the investment opportunities hypothesis that secured debt financing is more valuable for issuing firms with high growth opportunities. In contrast, we find a lack of support for the free cash flow hypothesis. These findings hold even after controlling for other potentially influential variables. Our study provides a better understanding of the relative importance of various potential determinants in explaining the variation in the valuation impact of secured debt issues. Springer Science+Business Media, LLC, 2006 Secured debt nationallicence Investment opportunities nationallicence Free cash flow nationallicence Chang Shao-Chi Institute of International Business, National Cheng Kung University, Tainan, Taiwan aut Chen Sheng-Syan Department of Finance, College of Management, National Taiwan University, Taipei, Taiwan aut Hsing Ailing Department of Finance, College of Management, Yuan Ze University, Taoyuan, Taiwan aut Huang Chia Department of Finance, College of Management, National Taiwan University, Taipei, Taiwan aut Review of Quantitative Finance and Accounting Kluwer Academic Publishers-Plenum Publishers; http://www.springer-ny.com 28/2(2007-02-01), 123-145 0924-865X 28:2<123 2007 28 11156 https://doi.org/10.1007/s11156-006-0007-6 text/html Onlinezugriff via DOI 1 research-article jats NATIONALLICENCE 856 40 https://doi.org/10.1007/s11156-006-0007-6 text/html Onlinezugriff via DOI NATIONALLICENCE 700 1- Chang Shao-Chi Institute of International Business, National Cheng Kung University, Tainan, Taiwan aut NATIONALLICENCE 700 1- Chen Sheng-Syan Department of Finance, College of Management, National Taiwan University, Taipei, Taiwan aut NATIONALLICENCE 700 1- Hsing Ailing Department of Finance, College of Management, Yuan Ze University, Taoyuan, Taiwan aut NATIONALLICENCE 700 1- Huang Chia Department of Finance, College of Management, National Taiwan University, Taipei, Taiwan aut NATIONALLICENCE 773 0- Review of Quantitative Finance and Accounting Kluwer Academic Publishers-Plenum Publishers; http://www.springer-ny.com 28/2(2007-02-01), 123-145 0924-865X 28:2<123 2007 28 11156 Metadata rights reserved Springer special CC-BY-NC licence nationallicence BK010053 XK010053 XK010000 NATIONALLICENCE NATIONALLICENCE NL-springer