This paper argues that corporations may use convertible bonds as an indirect way to get
equity into their capital structures when adverse-selection problems make a conventional …

This paper contends that corporations use callable, convertible bonds to lower the issuance
costs of sequential financing. Sequential financing increases issue costs but helps control …

In this article, we study a well-known real option: the opening and closing of mines. Using a
new database that tracks the annual opening and closing decisions of 285 developed North …

Written by leading market risk academic, Professor Carol Alexander, Pricing, Hedging and
Trading Financial Instruments forms part three of the Market Risk Analysis four volume set …

In this article we examine whether firms structure their convertible bond transactions to
manage diluted earnings per share (EPS). We find that the likelihood of firms issuing …

ABSTRACT Starting with Ingersoll (1977b), the academic literature has repeatedly sought to
explain why convertible bonds are called late. The findings here demonstrate there is no call …

This paper provides an overview of the main results of the literature on pricing convertible
bonds. It covers simple convertible bonds which are non-callable and can be converted only …

For a sample of convertible bonds issued during the period 1980 through 2002, we
empirically investigate the determinants of call policy. We find that the risk of a failed call …

A firm issues a convertible bond. At each subsequent time, the bondholder must decide
whether to continue to hold the bond, thereby collecting coupons, or to convert it to stock …

The information content of conversion‐forcing bond calls depends on the after‐tax cash flow
to bondholders. If the dividend after conversion exceeds the after‐tax coupon but is less than …