Systematic risk changes around convertible debt offerings: A note on recent evidence

We document a significant increase in systematic equity risk after a firm has issued convertible debt. In contrast, no such increase can be detected for equity issuers when infrequent trading and price adjustment delays are controlled for. The evidence is consistent with the notion that convertible debt issuers may be rationed out of the equity market due to uncertainty about their systematic risk.

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Year of publication:	2009
Authors:	Kleidt, Benjamin ; Schiereck, Dirk
Published in:	Global Finance Journal. - Elsevier, ISSN 1044-0283. - Vol. 20.2009, 1, p. 98-105
Publisher:	Elsevier
Keywords:	Systematic risk Convertible debt Seasoned equity offering

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Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005006695