We examine seasoned offerings of common stock and stock-warrant units to test predictions of recent theories of security issuance based on sequential financing and information signaling. We specify and test a simultaneous equations model involving the choice of shares versus stock-warrant units...

Conversion-forcing calls of convertible preferred stocks are re- examined focusing on the value of the conversion option impounded in the preferred price. This amount represents the preferred shareholder wealth potentially transferable to common stockholders. Capture of this wealth underlies the...

This study contributes to the agency and corporate governance literature by investigating the relationship between one form of bonding (i.e. aligning the interests of CEOs and shareholders by contract) and a set of firm characteristics that indicate monitoring effectiveness (i.e. board...

Contrary to predictions, previous studies of bid-ask spread estimators based on serial covariance in returns document surprisingly high proportions of positive serial covariances and therefore negative spread estimates. These findings may be due to the effects of time-variation in expected...

We examine seasoned offerings of common stock and stock-warrant units to test predictions of recent theories of security issuance based on sequential financing and information signaling. We specify and test a simultaneous equations model involving the choice of shares versus stock-warrant units...

We provide evidence directly linking spinoff announcement returns to the pre-spinoff conduct of internal capital markets. Firms' internal capital markets may enhance value by channeling capital to divisions with superior investment opportunities (high Tobin's q), and/or by starving divisions...

We appeal to the literature on optimal timing of capital investment to identify a metric that permits a new test of the sequential financing motive for financing with convertible securities. We argue that firms that should execute capital investment with little delay should design convertibles...

Negative stock price reactions to conversion-forcing calls of convertible bonds and preferred stocks are re-examined, and most of the sample firms are shown to exhibit full price recovery by the end of the conversion period. In addition, analysts' earnings forecasts, both short-term and...