We examine the relationship between the Governance Index (G-Index) and convertible bonduse by firms, specifically in the presence or absence of covenants. We find that the better theshareholder governance (lower G-Index) of firms, the more they are likely to issue convertibleinstead of straight...

We investigate the effect of creditor rights on the probability of becoming a takeover target by constructing firm-level bond covenant indices. Our primary result is that the more financial covenants a firm has, the more likely it is to become the target of an acquisition. This finding is robust...