Why Do Firms Issue Hybrid Bonds?
研究企业为何发行混合债券，发现企业会根据国际财务报告准则或信用评级机构的杠杆考量来设计债券结构，以获取权益分类的好处。
This study examines why firms issue hybrid bonds. Hybrid bonds can be structured so that they can be classified as either debt or equity under International Financial Reporting Standards (IFRS) and/or by credit rating agencies. We exploit this setting to examine whether firms consider leverage based on IFRS and/or credit ratings when structuring hybrid bonds. We find the following: First, unrated firms issue hybrid bonds that are classified as equity under IFRS if their IFRS-based leverage is higher. Rated firms issue hybrid bonds classified as equity by credit rating agencies if their credit rating is at risk and when their credit rating deteriorates. Second, drawing on the debt contracting value of accounting information and credit ratings, we expect and find that rated firms with stronger credit ratings issue hybrid bonds structured to be classified as equity solely by credit rating agencies but as debt under IFRS. Conversely, rated firms with a weaker credit rating and a higher default risk issue hybrid bonds that are classified as equity under IFRS and by credit rating agencies. Firms incur considerable interest costs when issuing hybrid bonds, suggesting that firms associate substantial benefits with an equity classification under IFRS and/or by credit rating agencies.