Abstract
This thesis examines the impact of corporate bond index inclusions on companies' share prices during the sample period, which extends from 2013 to 2018. By employing event study methodology and a cross-sectional analysis, I find evidence for a significant negative price response to inclusions at the index rebalancing date. Furthermore, firms with quality rated bonds tend to outperform firms with high yield bonds, though all corporate debt issuers seem to experience negative abnormal returns. I demonstrate further a small negative correlation of bond size to firms' common equity. Results show little to no evidence of a significant difference for companies with included and not included bonds.
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