Devising a non-standard convertible zero-coupon bond to enhance corporate governance

Arbeitspapier

This research paper brings forward a non-standard convertible zero-coupon bond endowed with a set of distinctive features attached to it so as to strengthen the corporate governance of the issuer, namely that conversion actually takes place at maturity date only; that conversion is mandatory; it offers investors a pay-off function tailored to match the conversion; there is no call provision whatsoever; it is suitable for private or public placements; credit-risk rating is of the essence and, lastly, it requires from the company a track record statement on behalf of investors. Although this sort of bond actually provides the company with a powerful financing vehicle, we argue that it could also play a constructive role if it were used in compensation packages for rewarding both senior managers and the Board of Directors.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Serie Documentos de Trabajo ; No. 421

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Mergers; Acquisitions; Restructuring; Voting; Proxy Contests; Corporate Governance ; Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill ; Portfolio Choice; Investment Decisions ; Asset Pricing; Trading Volume; Bond Interest Rates
• Thema: zero-coupon bond ; convertible bond ; corporate governance ; covenants ; compensation packages ; track record statement ; Corporate Governance ; Zero-Bond

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Apreda, Rodolfo
• Ereignis: Veröffentlichung
• (wer): Universidad del Centro de Estudios Macroeconómicos de Argentina (UCEMA)
• (wo): Buenos Aires
• (wann): 2010

Weitere Informationen

• Handle: http://hdl.handle.net/10419/84292
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ