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This paper examines an investment strategy based on free cash flows. The strategy selects securities into a quot;longquot; portfolio that outperforms the market index, returns of similar size securities, and returns of similar risk (beta and book-to-market) securities. The portfolio includes...
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The present paper examines changes in risk characteristics of a firm when it issues convertible bonds by studying the change in beta before and after the issuance of convertible bonds. Using a sample of 149 firms, strong evidence was found of change in beta, along with significant heterogeneity...
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