Previous work shows that firms earn statistically significant, positive abnormal returns when they announce favorable revisions of line-of-credit agreements with banks, and many explanations have been proposed. Conspicuously absent is evidence of the impact of these agreements on the other party...

Trust-preferred stock is a debt-equity hybrid that offers the tax deductibility of dividends but is treated as equity capital by bank regulators and rating agencies. The purpose of this paper is to examine whether holders of bank debt securities benefit from trust-preferred issuance in the form...

Trust-preferred stock is a debt-equity hybrid that offers the tax deductibility of dividends but is treated as equity capital by bank regulators and rating agencies. The purpose of this paper is to examine whether holders of bank debt securities benefit from trust-preferred issuance in the form...