We examine the impact of macroeconomic and firm-specific factors on the likelihood of issuance and the structure of convertible bonds. Consistent with convertibles mitigating financial distress and contracting costs, our results indicate that the likelihood of issuing convertible bonds compared...

In this paper, we study how the announcement returns of convertible bonds change for different issues in a sequence for firms in various sectors of the economy. We show that industrial firms obtain significantly lower returns in later issues of convertible bonds compared to former issues. In...

In this paper, we study the long-run operating performance of preferred stock issuers. We use three different measures of operating performance; pre-tax cash flows, profit margin and return on assets. We study the performance of industrial firms, financial firms, and utilities separately, as well...