Students of the Finance Master's program took the third place in the All-Russian Cbonds competition

 

 

Roman Podlevskikh and Sabrina Vasilenko, 2nd year students of the Finance Master's program, took third place in the VI annual All-Russian student paper competition on the bond market, organized by the leading information and analytical provider Cbonds.

More than 70 students from all over Russia and the CIS took part in the competition aimed at identifying and supporting talented young researchers in the field of finance. In their competitive work, Roman and Sabrina, under the scientific supervision of Associate Professor, Head of the Finance Department Varvara Vadimovna Nazarova, conducted a comprehensive study on the topic "Factors of abnormal stock returns after the issuance of convertible bonds: an analysis of the Indian and Chinese markets."

The relevance of their work is due to the rapid growth of Asian financial markets in the global economy. While the issuance of convertible bonds by companies from developed countries has been studied quite well, the specifics of the reaction of emerging markets such as India and China remain ambiguous. Using modern econometric methods, in particular the BHAR method and regression analysis, the authors revealed that the issuance of convertible bonds is followed by significant negative long-term excess yields, especially in the Chinese market. The analysis showed that the relationship between financial leverage and excess profitability is non-linear. In addition, higher return on assets (ROA) mitigates the negative market reaction, while release-related factors such as conversion rate and placement volume have limited explanatory power. The results of the study are of practical value both for corporate finance directors choosing financing instruments and for investors assessing risks and opportunities in Asian markets. The work can also contribute to further study of the issue.

"Participating in such a professional competition is an invaluable experience. We are grateful to the program for the knowledge gained and to our supervisor, Varvara Vadimovna, for her help and support at all stages of the work. We would also like to express our gratitude to Cbonds and personally to Konstantin Vasiliev, member of the Academic Council of MP «Finance», Partner of Cbonds, for the support of students and valuable prizes. For us, this is not only recognition of our work, but also a great opportunity to express ourselves in the professional community," Roman and Sabrina shared their impressions.

Thanks to the prize, Roman and Sabrina were invited to participate in the XXIII Russian Bond Congress, the key industry event of the year, where leading experts and investors will gather to discuss debt market trends.

Congratulations to the guys and wish them further success in their scientific and professional activities!