2013-03-01
Do Convertible Bond Issuers Cater to Investor Demand?
Publication
Publication
Financial Management , Volume 42 - Issue 1 p. 41- 78
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.
| Additional Metadata | |
|---|---|
| doi.org/10.1111/j.1755-053X.2012.01222.x, hdl.handle.net/1765/76270 | |
| ERIM Top-Core Articles | |
| Financial Management | |
| Organisation | Erasmus Research Institute of Management |
|
de Jong, A., Duca, E., & Dutordoir, M. (2013). Do Convertible Bond Issuers Cater to Investor Demand?. Financial Management, 42(1), 41–78. doi:10.1111/j.1755-053X.2012.01222.x |
|