Finnerty, John D.; Jiao, Jie; Yan, An - In: Journal of Banking & Finance 36 (2012) 1, pp. 275-289
This paper provides a rationale for the use of convertible securities as the medium of exchange in corporate change-of-control transactions. We argue that convertible securities can resolve the information asymmetry about the bidder’s value while at the same time mitigating the information...