@techreport{NBERw4028,
 title = "Convertible Bonds as "Back Door" Equity Financing",
 author = "Jeremy C. Stein",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "4028",
 year = "1992",
 month = "March",
 URL = "http://www.nber.org/papers/w4028",
 abstract = {This paper argues that corporations may use convertible bonds as an indirect (albeit possibly risky) method for getting equity into their capital structures in situations where adverse selection problems make a conventional stock issue unattractive. Unlike other theories of convertible bond issuance, the model of this paper highlights: 1) the importance of call provisions on convertibles; and 2) the significance of costs of financial distress to the Information content of a convertible issue.},
}