Convertible notes: The debt versus equity classification problem

Journal of Multinational Financial Management

Volumn 8, Issue 2-3, 1998, Pages 303-315

  Magennis, Darren ^a   Watts, Edward ^b   Wright, Sue ^b  

^a UNIVERSITY OF WESTERN SYDNEY   (Australia)

^b MACQUARIE UNIVERSITY   (Australia)

Author keywords

Convertible notes; Event study; G14; G32; Signalling

Indexed keywords

EID: 0040678165     PISSN: 1042444X     EISSN: None     Source Type: Journal    
DOI: 10.1016/s1042-444x(98)00033-4     Document Type: Article

References (16)

1. Asquith P., Mullins D. Equity issues and offering dilution. Journal of Financial Economics. 15:1986;73-85.
2. Brigham E. An analysis of convertible debentures: theory and some empirical evidence. Journal of Finance. 21:1966;35-54.
3. Brown S., Warner J. Using daily stock returns. Journal of Financial Economics. 14:1985;3-31.
4. Dann L., Mikkelson W. Convertible debt issuance, capital structure change and financing-related information. Journal of Financial Economics. 13:1984;157-186.
5. Davidson W., Glascock J., Schwarz T. Signalling with convertible debt. Journal of Financial and Quantitative Analysis. 30(3):1995;425-439.
6. Eckbo B. Valuation effects of corporate debt offerings. Journal of Financial Economics. 15:1986;119-152.
7. Fama, E., 1976. Foundations of Finance. Basic Books, New York.
8. ITAA, The Federal Parliament of Australia, 1996. The Income Tax Assessment Act 1936 (Cth). In: Australian Tax Legislation 1996, vol. 1. Butterworths, Sydney.
9. Kim Y. Informative conversion ratios: a signalling approach. Journal of Financial and Quantitative Analysis. 25(2):1990;229-243.
10. Korwar A. The effect of new issues of equity. Journal of Financial Economics. 10:1982;113-138.
11. Masulis R., Korwar A. Seasoned equity offerings: an empirical investigation. Journal of Financial Economics. 15:1986;85-119.
12. Mikkelson W. convertible calls and security returns. Journal of Financial Economics. 9:1981;237-265.
13. Mikkelson and Partch, 1986. Valuation effects of security offerings and the issuance process, Journal of Financial Economics 15, 31-60.
14. Mourell M., Willoughby J. Convertible notes. Australian Business Law Review. 21(5):1993;338-352.
15. Parker, C. (Ed.), 1998. Australian Accounting Standards Board, 1996, AASB1033. In: Accounting Handbook 1998. Prentice Hall, Englewood Cliffs, NJ.
16. Stein J. Convertible bonds as backdoor equity financing. Journal of Financial Economics. 32:1992;3-21.