Construct · 1 fields · 1 citations

backdoor equity hypothesis: a standalone construct

One name. One construct. A landmark on the map.

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backdoor equityhypothesis1 CONSTRUCTBackdoor equitySTEIN · CORPORATE FINANCE

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Corporate finance

proposal that firms issue convertible bonds as delayed equity, expecting conversion, when information problems make direct equity issuance costly.

In corporate finance, backdoor equity hypothesis refers to proposal that firms issue convertible bonds as delayed equity, expecting conversion, when information problems make direct equity issuance costly. This meaning comes from Stein (1992) in Journal of Financial Economics.[1]

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Nearby constructs

conversion5 fields · 5 citationsjingle · one word, four turningsequity4 fields · 4 citationsjingle · one word, four constructshypothesis2 fields · 2 citationsjingle · one word, two constructs

References

  1. Stein, J. C. (1992). Convertible bonds as backdoor equity financing. Journal of Financial Economics, 32(1), 3-21. https://doi.org/10.1016/0304-405x(92)90022-p

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