Agency Problems, Information Asymmetries, and Convertible Debt Security Design
提出并检验了一个证券设计框架，解释企业为何发行可转换债券。研究发现，部分发行者用以缓解资产替代问题，部分用以减少逆向选择问题，且设计随经济周期变化。
This paper proposes and implements a security design framework to assess why corporate managers issue convertible debt. We examine three theories that make predictions about the design of convertible debt. Our results suggest that some issuers design convertible debt to mitigate asset substitution problems, while others design it to reduce adverse selection problems. We also find that issuers vary convertible debt security design over the business cycle in response to time variation in asset substitution and adverse selection problems. Overall, the results indicate that corporate managers actively alter convertible debt security design to mitigate costly external finance problems. Journal of Economic Literature Classification Number: G32