Samenvatting
We examine the impact of fluctuations in investor demand for convertible securities on convertible bond issue volumes, pricing, and design. We find evidence of a positive impact of investor demand proxies on convertible bond issue volumes. We also document significantly lower convertible bond underpricing in periods with higher investor demand. The results hold in a variety of specifications, and are robust to controlling for firm-specific and macroeconomic financing cost proxies. However, we obtain only limited evidence that issuers adjust the design of their convertible bond offerings in response to investor demand.
| Originele taal-2 | English |
|---|---|
| Pagina's (van-tot) | 41-78 |
| Aantal pagina's | 38 |
| Tijdschrift | Financial Management |
| Volume | 42 |
| Nummer van het tijdschrift | 1 |
| DOI's | |
| Status | Published - 1-mrt.-2013 |