search query: @author Varma, R. / total: 4
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| Author: | Ghosh, C. Varma, R. Woolridge, R. |
| Title: | Exchangeable debt calls and security returns |
| Journal: | Journal of Business Finance and Accounting
1996 : JAN, VOL. 23:1, p. 107-114 |
| Index terms: | ACCOUNTING DEBT SECURITY |
| Language: | eng |
| Abstract: | This paper investigates the common stock price effects associated with exchangeable debt calls. Exchangeable calls are similar to convertible calls in that both reduce the leverage of the calling firm. However, unlike a convertible call, the debt of the calling firm in an exchangeable call can be converted into the common stock of another firm in which the calling firm has an ownership position. The empirical evidence on announcements of convertible debt calls clearly indicates that these transactions are accompanied, on average , by a significant decline in the market value of the calling firm's common stock. |
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