Journal of Financial Economics Vol. 19 No. 1 1987
Convertible call policies
Abstract
This paper tests an information-signaling hypothesis as a potential explanation for corporate convertible bond call policies and for the negative share price reaction to the announcement of the calls. We test this hypothesis by trying to ascertain whether the information signaled is realized. Our results show an unexpected decline in the firm's performance subsequent to the call. We also find significant negative cumulative returns during a sixty-month period following the calls.
- DOI
- 10.1016/0304-405x(87)90030-4
- Volume
- 19
- Issue
- 1
- Pages
- 91-108
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref