Abstract

http://ssrn.com/abstract=178589
 
 

Citations



 


 



Debt-Equity Hybrid Securities


Ellen Engel


University of Chicago Booth School of Business

Merle Erickson


University of Chicago - Booth School of Business

Edward L. Maydew


University of North Carolina at Chapel Hill


Journal of Accounting Research, Autumn 1999

Abstract:     
Trust preferred stock, first issued in 1993, was engineered to be treated as preferred stock for financial statement purposes and as debt for tax purposes (i.e., payments on trust preferred stock are deductible by the issuer). Our analyses exploit the features of trust preferred stock to shed light on three issues: 1) the extent to which firms incur costs to manage the balance sheet classification of a security; ii) the magnitude of tax benefits, if any, associated with leverage increasing capital structure decisions, and iii) the extent to which investor-level taxation imposes implicit taxes on securities.

JEL Classification: M41, M43, M49, H25, G32

Accepted Paper Series


Not Available For Download

Date posted: October 5, 1999  

Suggested Citation

Engel, Ellen and Erickson, Merle and Maydew, Edward L., Debt-Equity Hybrid Securities. Journal of Accounting Research, Autumn 1999. Available at SSRN: http://ssrn.com/abstract=178589

Contact Information

Ellen Engel
University of Chicago Booth School of Business ( email )
5807 S. Woodlawn Avenue
Chicago, IL 60637
United States
773-834-0966 (Phone)
866-377-52152 (Fax)
Merle Erickson
University of Chicago - Booth School of Business ( email )
5807 S. Woodlawn Avenue
Chicago, IL 60637
United States
773-834-0716 (Phone)
773-702-0458 (Fax)
Edward L. Maydew (Contact Author)
University of North Carolina at Chapel Hill ( email )
McColl Building
Chapel Hill, NC 27599-3490
United States
919-843-9356 (Phone)
HOME PAGE: http://www.kenan-flagler.unc.edu/faculty/directory/accounting/edward-maydew

Feedback to SSRN


Paper statistics
Abstract Views: 1,279

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo8 in 0.281 seconds