CORPORATE FINANCING STRATEGY OF LISTED PROPERTY FIRMS

Abstract

One of the most important decisions to be made by listed firms seeking growth through capital expansion and debt borrowings is the type of financing instrument to be used . Issuance of shares through rights offering is by far the most commonly used method of tapping fund from the public . Lately , however , there has been a change in financing strategy adopted by listed firms . More and more firms have been making public issues of bonds and warrants to their respective shareholders and selected financial institutions . Does this indicate the decline in popularity of rights financing or this only signifies a temporary change which does not have much repercussion as to the future financing strategy of listed firms ? This dissertation attempts to answer the question by examining the viability of each of the financing instruments , namely warrants , bonds , rights and convertible securities . A broad overview of the Singapore equity market is also undertaken to analyse the past , present and future trend of corporate financing strategy .