Convertibles and milestones in staged financing

被引：3

作者：

Wang L. ^{[1
]}

Wang S. ^{[2
]}

机构：

[1] Accounting School, Shanghai University of Finance and Economics, Shanghai

[2] Department of Economics, Hong Kong University of Science and Technology, Clear Water Bay

来源：

Journal of Economics and Finance | 2009年 / 33卷 / 2期

关键词：

Convertibles; Milestones; Staged Financing;

D O I：

10.1007/s12197-008-9057-z

中图分类号：

学科分类号：

摘要：

This paper investigates a popular financing strategy whereby the manager of a firm uses convertibles in staged financing. Staged financing is particularly popular in corporate finance, even although it has potential incentive and risk problems. This paper identifies many interesting properties of convertibles in staged financing, including the fact that staged financing using convertibles can almost achieve the first best. We also find that risks can reduce agency costs by putting pressure on the manager to perform. These results may explain why convertibles are a popular instrument in staged financing in reality. © 2008 Springer Science+Business Media, LLC.

引用

页码：189 / 221

页数：32

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