Contingent convertible bonds (CoCos) are the latest bank capital instruments advocated by the Basel Committee on Banking Supervision and many national bank regulators. CoCos are intended to reduce banks' reliance on government bailouts and have been extensively issued by banks worldwide since...

We conduct interviews with financial managers in Australia, Canada, the U.K., and the U.S. to study the question why companies issue convertible bonds. For the vast majority of the firms, convertible bonds are chosen because managers find straight debt too costly. Convertible bonds are preferred...

The unique regulatory environment of REITs casts doubt on the traditional theoretical process by which REIT managers base their convertible debt issuance decisions on issuer condition and prospects. Anecdotal evidence shows that REITs may have catered to demand by investors, including a demand...

Using a sample of 418 private placements by firms on the Taiwan stock markets, we examine their announcement returns and post-issue performance. Placements are classified into three categories: recapitalization, investment, and general purpose. We find that issuers of private placements tend to...

I study the target leverage and partial adjustment activity of firms that issue convertible bonds. Convertibles may help target adjustment efforts by lowering issuance transaction costs and reducing interest expenses. Nevertheless, convertible debt can increase liabilities for an unknown amount...

We examine the influence of corporate governance quality on firms' choice between convertible debt, straight debt, and equity. Using a Western European sample of security offerings made between 2000 and 2010, we find that weaker firm-specific and country-specific corporate governance quality...