Operating Performance and Stock Returns of Firms Calling Convertible Preferred Stocks
检验了可转换优先股赎回后公司的长期经营业绩和股票回报，发现赎回公司并未比基准公司表现更差，反而经营业绩略优。
Abstract: Using methodologies developed by Barber and Lyon (1996 and 1997 ), we examine the long‐run operating performance and stock returns of firms around in‐the‐money calls of convertible preferred stock. Our study intends to be a direct test of the hypothesis that managers call in‐the‐money convertibles when they view a decline in the firms’ performance. We find no evidence that calling firms underperform non‐calling benchmark firms. On the contrary, we find mild evidence that the post‐call operating performance of calling firms is better than a carefully selected group of benchmark firms and call firms’ post‐call stock returns are no worse than benchmark firms.