An empirical study of a financial signalling model
Brennan and Kraus (1982,1986) developed a costless signalling model which can explain why managers issue hybrid securities—convertibles(CB's) or bond-warrant packages(BW's). The model predicts that when the true standard deviation (σ) of the distribution of future firm value is unknown to...
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| Language: | English |
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University of British Columbia
2010
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| Online Access: | http://hdl.handle.net/2429/26969 |