Convertible Bond Issuance, Shareholders Wealth and Corporate Governance
Date Issued
2004
Date
2004
Author(s)
Chen, Hsi-Yi
DOI
en-US
Abstract
Euro Convertible Bonds (ECB) and domestic Convertible bonds (CB) have become popular financing instruments for Taiwanese corporations in recent years. However, there may be corporate governance problem associated with ECB and CB issuance. In addition, shareholders’ wealth may be diluted if bond indenture is not fair enough. This article investigates the possible dilution effect by reviewing three clauses setting on ECB and CB. Empirical results show that ECBs and CBs of firms with better corporate governance characteristics end to enjoy high conversion premium and to resist special reset clause.
Subjects
海外可轉債
可轉換公司債
特別重設
公司治理
Convertible Bond (CB)
Corporate Governance
Positive effect
Euro Convertible Bond (ECB)
wealth expropriation effect
Type
thesis
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