The Financing Decisions of Convertible Debt and The Long-Run Performance after Conversion
碩士 === 國立交通大學 === 財務金融研究所 === 96 === In the past, there was lots of literatures treating firms' performance after issuing convertible debt, but few scholars tended to discuss the long run performance after conversion. It is difficult to collect the information about the date when the convertibl...
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ndltd-TW-096NCTU53040102015-10-13T13:51:49Z http://ndltd.ncl.edu.tw/handle/07116440230992354463 The Financing Decisions of Convertible Debt and The Long-Run Performance after Conversion 可轉換公司債之融資決策與轉換後之長期績效 Tzu-Yang Chang 張梓洋 碩士 國立交通大學 財務金融研究所 96 In the past, there was lots of literatures treating firms' performance after issuing convertible debt, but few scholars tended to discuss the long run performance after conversion. It is difficult to collect the information about the date when the convertible is converted on. Therefore, in this study, we treat the case where the price exceeds the conversion price as the timing of conversion. Then, we exam the long run performance after conversion. Literatures suggest that convertible debt reduces the debt- and equity-related costs of external finance, so many firms issue convertible debt instead of standard securities such as straight debt (Green, 1984) or common equity (Stein, 1992). This paper also contrasts the long-run abnormal returns after conversion based on two different incentives. Besides, we try to explain the firms’ financing decisions to issue convertible debt by adopting the duration model. The result indicates that firms on average perform poorly in the long time after conversion, particularly for equity-like convertible debt. Moreover, it reveals that the business cycle, firm size, offer size, stock volatility, financial leverage and future investment opportunities have significant influence on the financing decisions of issuing convertible debt. Jane-Raung Lin 林建榮 2008 學位論文 ; thesis 59 zh-TW |
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碩士 === 國立交通大學 === 財務金融研究所 === 96 === In the past, there was lots of literatures treating firms' performance after issuing convertible debt, but few scholars tended to discuss the long run performance after conversion. It is difficult to collect the information about the date when the convertible is converted on. Therefore, in this study, we treat the case where the price exceeds the conversion price as the timing of conversion. Then, we exam the long run performance after conversion.
Literatures suggest that convertible debt reduces the debt- and equity-related costs of external finance, so many firms issue convertible debt instead of standard securities such as straight debt (Green, 1984) or common equity (Stein, 1992). This paper also contrasts the long-run abnormal returns after conversion based on two different incentives. Besides, we try to explain the firms’ financing decisions to issue convertible debt by adopting the duration model.
The result indicates that firms on average perform poorly in the long time after conversion, particularly for equity-like convertible debt. Moreover, it reveals that the business cycle, firm size, offer size, stock volatility, financial leverage and future investment opportunities have significant influence on the financing decisions of issuing convertible debt.
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author2 |
Jane-Raung Lin |
author_facet |
Jane-Raung Lin Tzu-Yang Chang 張梓洋 |
author |
Tzu-Yang Chang 張梓洋 |
spellingShingle |
Tzu-Yang Chang 張梓洋 The Financing Decisions of Convertible Debt and The Long-Run Performance after Conversion |
author_sort |
Tzu-Yang Chang |
title |
The Financing Decisions of Convertible Debt and The Long-Run Performance after Conversion |
title_short |
The Financing Decisions of Convertible Debt and The Long-Run Performance after Conversion |
title_full |
The Financing Decisions of Convertible Debt and The Long-Run Performance after Conversion |
title_fullStr |
The Financing Decisions of Convertible Debt and The Long-Run Performance after Conversion |
title_full_unstemmed |
The Financing Decisions of Convertible Debt and The Long-Run Performance after Conversion |
title_sort |
financing decisions of convertible debt and the long-run performance after conversion |
publishDate |
2008 |
url |
http://ndltd.ncl.edu.tw/handle/07116440230992354463 |
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