| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5055094 | Economic Modelling | 2012 | 10 Pages |
Abstract
⺠We examine the optimal strategy for the investment financed with convertible debt. ⺠The firm of higher volatility finances with high-coupon convertible debt. ⺠The magnitude of optimal coupon payment has large impact on investment strategies. ⺠The firm financing with callable convertible debt invests relatively early. ⺠The opportunity of forcing-conversion increases as the volatility becomes large.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Kyoko Yagi, Ryuta Takashima,