Title

On The Information Content Of Calls Of Convertible Securities

Authors

Authors

A. K. Byrd;W. T. Moore

Comments

Authors: contact us about adding a copy of your work at STARS@ucf.edu

Abbreviated Journal Title

J. Bus.

Keywords

POLICY; DEBT; CONVERSION; STOCK; Business

Abstract

Negative stock price reactions to conversion-forcing calls of convertible bonds and preferred stocks are re-examined, and most of the sample firms are shown to exhibit full price recovery by the end of the conversion period. In addition, analysts' earnings forecasts, both short-term and long-term, are found to be revised upward following call announcements for convertible bonds and preferred stocks. The combined findings cast doubt on the established belief that such capital structure decisions signal negative information about firm value.

Journal Title

Journal of Business

Volume

69

Issue/Number

1

Publication Date

1-1-1996

Document Type

Article

DOI Link

http://dx.doi.org/10.1086/209681

Language

English

First Page

89

Last Page

101

WOS Identifier

WOS:A1996TU44400006

ISSN

0021-9398

Recommended Citation

"On The Information Content Of Calls Of Convertible Securities" (1996). Faculty Bibliography 1990s. 1581.
https://stars.library.ucf.edu/facultybib1990/1581