search query: @indexterm CONVERTIBLE BONDS / total: 8
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| Author: | Wang, S. |
| Title: | Convertibles in sequential financing |
| Journal: | Review of finance
2009 : OCT, VOL. 13:4, p. 727-760 |
| Index terms: | corporate finance financing convertible bonds models |
| Language: | eng |
| Abstract: | Sequential financing (henceforth as: seq-fin.) is a popular strategy in corporate finance. However, seq-fin. may have many potential problems. According to this paper, certain types of convertibles (here as: convts.) are shown to be deployed to resolve the problems completely. This may explain why convts. are widely adopted to implement seq-fin. in reality, especially among companies with many real options. The call feature (as: c-f.) and some popular call restrictions (as: c-rsts.) are found to be necessary for efficient convts. Actually, almost all real-world convts. have a c-f. and c-rtst. |
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