Tax Shields, Sample‐Selection Bias, and the Information Content of Conversion‐Forcing Bond Calls
分析了强制转换债券赎回的信息含量，发现赎回信号取决于转换后股息与税后票息的关系，并指出研究此类赎回时存在样本选择偏差。
ABSTRACT The information content of conversion‐forcing bond calls depends on the after‐tax cash flow to bondholders. If the dividend after conversion exceeds the after‐tax coupon but is less than the before‐tax coupon, the call reveals unanticipated decreases in dividends and/or earnings that reduce the tax shield from interest payments. In contrast, a call when the dividend is less than the after‐tax coupon reveals the timing of an anticipated shift from exceptional firm‐specific positive growth to the industry norm. Efforts to document properties of convertible calls are subject to sample‐selection bias because calls are disproportionately associated with positive pre‐call firm‐specific growth.