Optimal Decision for Convertible Debt Financing - Some Observations from the American Mark
Optimal Decision for Convertible Debt Financing - Some Observations from the American Mark

Author(s): Jakub Marszałek
Subject(s): Business Economy / Management, Evaluation research, Financial Markets
Published by: Masarykova univerzita nakladatelství
Keywords: capital structure; financing; convertible bond; American company; assets substitution theory;
Summary/Abstract: Choosing an appropriate proportion between debt and equity is one of the most important decisions in a financial management. A convertible bond may be an attractive financial instrument that helps to achieve the optimal capital structure of a company. In this paper, we analyze 562 issues of the bonds from the American market between 2002-2013. The financial sector companies were excluded from the sample due to a different financial statement structure and different motives of the hybrid debt issuance.

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