This paper analyzes security-market returns relative to the political party of the president, the Federal Reserve's monetary policy, the year of the president's term, and the state of political gridlock. Contrary to prior studies, which evaluated the influences separately, we jointly evaluate...

Calling firms experience increases in systematic business risk following conversion-forcing calls of convertible debt. The increases in business risk are sufficiently large to offset the reductions in financial risk coming from the reduction in financial leverage following the call. As a result,...

We examine changes in equity and asset betas around convertible bond calls and report two major findings. First, calling firms exhibit an increase in asset betas following the call. We argue that the finding is consistent with the implications of the sequential financing theory but not of the...