Affleck-Graves, John; Miller, Robert E. - In: Journal of Financial Research 26 (2003) 4, pp. 421-447
We examine the long-run performance of the common stock of firms following calls of both straight and convertible debt from 1945 to 1995. Using a sample of 718 calls of straight debt, we find an average abnormal return in the five years following the call of between 0.16% and 0.34% per month,...
