King, Tao-Hsien Dolly; Mauer, David C - In: The Journal of Business 73 (2000) 3, pp. 403-44
We examine corporate call policy for 1,642 nonconvertible bonds that were called during the period 1975-94. The vast majority of firms delay calls and call when the bond price exceeds the call price. We find that larger, less liquidity constrained firms with a larger opportunity cost of delaying...