Dividend-Protected Convertible Bonds and the Disappearance

Research, Preprint OPEN
Grundy, Bruce D.; Verwijmeren, Patrick;
  • Publisher: Tinbergen Institute/DSF
  • Subject: Unternehmensfinanzierung | Welt | Call policy | Dividende | G32 | Wandelanleihe | G2 | Convertible securities | Call policy, Dividend protection, Convertible securities, Security design | Security design | Dividend protection
    • jel: jel:G32 | jel:G2
      ddc: ddc:330

Firms have not historically called their convertible bonds as soon as they could force conversion. Various explanations for the delay rely on the size of the dividends that bondholders forgo so long as they do not convert. We investigate an important change in convertib... View more
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