Krishnan, C. N. V.; Laux, Paul A. - In: Journal of Financial and Quantitative Analysis 40 (2005) 02, pp. 403-434
To learn about investors' information processing, we examine the issuances of trust preferred stock, a leverage-neutral hybrid security. Specific benefits of trust preferred stock issuance have become focal points for issuers. These focal benefits include tax and financial distress avoidance,...