Empirical essays on security offerings
Zainab Mehmood · Research Explorer (The University of Manchester)
We investigate the effect of CEOs' education on their firms' probability of choosing convertible debt rather than straight debt and equity.Using a security choice framework, we find that CEOs with higher levels of education have a greater likelihood of issuing convertible debt, particularly when this is beneficial to their firms.However, CEOs with MBAs are unlikely to rely on convertibles, consistent with the assumption that an MBA can impede non-standard corporate finance choices.Consistent with upper echelons theory, we find that better educated executives are more innovative and reach better corporate finance decisions and choices.The findings withstand a range of robustness tests.