1 option
Convertible Bonds as "Back Door" Equity Financing / Jeremy C. Stein.
- Format:
- Book
- Author/Creator:
- Stein, Jeremy C.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w4028.
- NBER working paper series no. w4028
- Language:
- English
- Subjects (All):
- Convertible bonds.
- Physical Description:
- 1 online resource: illustrations (black and white);
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 1992.
- Cambridge, Mass. : National Bureau of Economic Research, 1992.
- Summary:
- This paper argues that corporations may use convertible bonds as an indirect (albeit possibly risky) method for getting equity into their capital structures in situations where adverse selection problems make a conventional stock issue unattractive. Unlike other theories of convertible bond issuance, the model of this paper highlights: 1) the importance of call provisions on convertibles; and 2) the significance of costs of financial distress to the Information content of a convertible issue.
- Notes:
- Print version record
- March 1992.
- Includes bibliographical references.
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