| Summary: | 碩士 === 國立交通大學 === 財務金融研究所 === 97 === Both leases and debt are popular financing instruments among corporations. Past research on leases finds mixed relations between leases and debt. Compared to previous studies, this paper extends the discussions from debt to convertible securities. Convertible security, including convertible debt and convertible preferred stock, is marked by its hybrid characteristics. We classify convertible security offerings into debt- or equity-like in further examination. Applying the Tobit model with control for heteroskedasticity, we find a complementary relationship between leases and long-term debt in the both convertible security samples. However, no significant evidence supports the existence of positive relations between leases and convertible securities. After isolating debt-like convertible security offerings for discussion, we find that complementary relations between leases and convertible debt are more pronounced.
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