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Stock reaction to dividend savings of convertible preferred calls: Free cash flow or price pressure effects?

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  • Kadapakkam, Palani-Rajan
  • Tang, Alex P.

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  • Kadapakkam, Palani-Rajan & Tang, Alex P., 1996. "Stock reaction to dividend savings of convertible preferred calls: Free cash flow or price pressure effects?," Journal of Banking & Finance, Elsevier, vol. 20(10), pages 1759-1773, December.
    • Handle: RePEc:eee:jbfina:v:20:y:1996:i:10:p:1759-1773
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    References listed on IDEAS

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    1. Lease, Ronald C & Masulis, Ronald W & Page, John R, 1991. "An Investigation of Market Microstructure Impacts on Event Study Returns," Journal of Finance, American Finance Association, vol. 46(4), pages 1523-1536, September.
    2. Mikkelson, Wayne H., 1981. "Convertible calls and security returns," Journal of Financial Economics, Elsevier, vol. 9(3), pages 237-264, September.
    3. repec:bla:jfinan:v:44:y:1989:i:5:p:1401-10 is not listed on IDEAS
    4. Mazzeo, Michael A & Moore, William T, 1992. "Liquidity Costs and Stock Price Response to Convertible Security Calls," The Journal of Business, University of Chicago Press, vol. 65(3), pages 353-369, July.
    5. Ingersoll, Jonathan E, Jr, 1977. "An Examination of Corporate Call Policies on Convertible Securities," Journal of Finance, American Finance Association, vol. 32(2), pages 463-478, May.
    6. Michael T. Maloney & J. Harold Mulherin, 1992. "The Effects of Splitting on the Ex: A Microstructure Reconciliation," Financial Management, Financial Management Association, vol. 21(4), Winter.
    7. Campbell, Cynthia J & Ederington, Louis H & Vankudre, Prashant, 1991. "Tax Shields, Sample-Selection Bias, and the Information Content of Conversion-Forcing Bond Calls," Journal of Finance, American Finance Association, vol. 46(4), pages 1291-1324, September.
    8. Linn, Scott C. & Pinegar, J. Michael, 1991. "The price effects of secondary offerings of senior securities and warrants," Journal of Banking & Finance, Elsevier, vol. 15(3), pages 683-698, June.
    9. Robert S. Hansen, 1988. "The Demise of the Rights Issue," The Review of Financial Studies, Society for Financial Studies, vol. 1(3), pages 289-309.
    10. Singh, Ajai K. & Cowan, Arnold R. & Nayar, Nandkumar, 1991. "Underwritten calls of convertible bonds," Journal of Financial Economics, Elsevier, vol. 29(1), pages 173-196, March.
    11. Harris, Milton & Raviv, Artur, 1985. "A Sequential Signalling Model of Convertible Debt Call Policy," Journal of Finance, American Finance Association, vol. 40(5), pages 1263-1281, December.
    12. Dunn, Kenneth B. & Eades, Kenneth M., 1989. "Voluntary conversion of convertible securities and the optimal call strategy," Journal of Financial Economics, Elsevier, vol. 23(2), pages 273-301, August.
    13. Asquith, Paul & Mullins, David W, Jr, 1991. "Convertible Debt: Corporate Call Policy and Voluntary Conversion," Journal of Finance, American Finance Association, vol. 46(4), pages 1273-1289, September.
    14. Hingorani, Archana & Makhija, Anil K. & Shastri, Kuldeep, 1994. "The impact of calls of preferred stock on common shareholders' wealth," Journal of Banking & Finance, Elsevier, vol. 18(6), pages 1095-1111, December.
    15. Alex P. Tang & Palani-Rajan Kadapakkam & Ronald F. Singer, 1994. "The Valuation Effects Of Out-Of-The-Money Calls Of Convertible Securities," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 17(4), pages 481-493, December.
    16. Tang, Alex P & Kadapakkam, Palani-Rajan & Singer, Ronald F, 1994. "The Valuation Effects of Out-of-the-Money Calls of Convertible Securities," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 17(4), pages 481-493, Winter.
    17. Harris, Lawrence E & Gurel, Eitan, 1986. "Price and Volume Effects Associated with Changes in the S&P 500 List: New Evidence for the Existence of Price Pressures," Journal of Finance, American Finance Association, vol. 41(4), pages 815-829, September.
    18. Carl D. Hudson & Marlin R. H. Jensen & William N. Pugh, 1993. "Informational Versus Price-Pressure Effects: Evidence From Secondary Offerings," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 16(3), pages 193-207, September.
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    Cited by:

    1. Palani‐Rajan Kadapakkam & Huey‐Lian Sun & Alex P. Tang, 2004. "Operating Performance and Stock Returns of Firms Calling Convertible Preferred Stocks," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 31(9‐10), pages 1559-1576, November.
    2. Omar, Ayishat & Tang, Alex P., 2019. "Earnings management and convertible preferred stock calls," International Review of Economics & Finance, Elsevier, vol. 63(C), pages 423-433.
    3. repec:bla:finmgt:v:36:y:2007:i:2:p:1-21:1 is not listed on IDEAS
    4. Chang, Saeyoung & Puthenpurackal, John, 2014. "Repurchases of convertible preferred stock and shareholder wealth," Journal of Business Research, Elsevier, vol. 67(4), pages 623-630.

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