Convertible Bond Design and Capital Investment: The Role of Call Provisions
研究可转换债券的赎回条款设计，发现投资机会到期较早的公司会提供较弱的赎回保护，且赎回保护期越短，发行后5年内资本支出越高。
ABSTRACT If firms issue convertible securities to facilitate sequential investment, the securities should be engineered to give sufficient flexibility to accommodate timing of follow‐on investment. We examine call provisions in convertible bonds and argue that firms with investment options expected to expire sooner (later) will offer weaker (stronger) call protection. We find that issues with weak or no call protection are offered by firms that invest greater amounts soon after issuance than those issuing convertibles with strong protection. Moreover, capital expenditure levels during the 5‐year period following issuance are inversely related to the length of call‐protection periods.