This paper analyzes risk adjustment within the context of French convertible bond (hereafter CB) financing decision. It aims at examining the possibility that the poor long-run stock price performance experienced by French CB issuers after the offering may be caused by an unexpected change in...

The purpose of this paper is to analyze the long-run operating performance of French convertible bonds (CB) issuers.Our results reveal that firms issuing convertible bonds under-perform substantially non-issuing firms from pre to post-issue periods. Our findings are robust with respect to the...