The study aims to investigate the signaling effect of bond issuance in Malaysia and to determine the company characteristics that influence the effect. Findings of the study reveal positive cumulative average abnormal returns following bond issuance indicating that the market treat bond offers as favourable corporate news.On the other hand, the cross-sectional analysis found insignificant relation between company profitability, growth opportunities, asset tangibility, size and managerial ownership with cumulative abnormal returns of bond issuers. The results confirm the signaling effect of bond issuance but further reveal that the effect is not affected by company characteristics
