THE MOTIVES AND CONSEQUENCES OF DEBT-EQUITY SWAPS AND DEFEASANCES: MORE EVIDENCE THAT IT DOES NOT PAY TO MANIPULATE EARNINGS
On February 9,1982, Hammermill Paper registered with the Securities and Exchange Commission to swap as many as 400,000 common shares for $13.4 million of the company's 8.07% promissory notes due February 1, 1997. The resulting swap increased Hammermill's 1st quarter earnings by $3.7 million, accounting for more than a third of its earnings for that period. Between February 9 and 10, the market value of Hammermill's equity fell by 4.5%. 1990 Morgan Stanley.
Year of publication: |
1990
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Authors: | Hand, John R. M. ; Hughes, Patricia J. |
Published in: |
Journal of Applied Corporate Finance. - Morgan Stanley, ISSN 1078-1196. - Vol. 3.1990, 3, p. 77-81
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Publisher: |
Morgan Stanley |
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