Lewis, Craig M.; Verwijmeren, Patrick - In: Journal of Corporate Finance 17 (2011) 4, pp. 809-831
This paper studies convertible security design for a sample of 814 issuers over the years 2000 through 2007. Using a nested logit model, we examine how firms choose fixed income claims and the method of payment. We find that fixed income claims are chosen to reduce corporate income taxes,...