전환사채 리픽싱 옵션의 필요성에 대한 연구

Abstract

This study analyzes the necessity of resetting clauses(referred to as the refixing option in South Korea) in convertible bonds in the Korean financial market. To determine whether these clauses are essential for the survival and growth of companies, we examine them from the perspectives of capital constraints and long-term performance. The main results are summarized as follows: First, firms were more likely to alleviate capital constraints without resetting clauses. Second, this effect was more pronounced when the ownership by majority shareholders was high. Lastly, our findings indicate that the issuance of convertible bonds with resetting clauses does not significantly enhance a firm’s long-term performance. The contributions of this study are as follows: The findings may hold implications for government policymakers regarding convertible bonds with resetting clauses. The results, indicating that these clauses do not positively impact capital constraints and long-term performance, suggest the need for a policy reassessment. These findings imply that policymakers should consider not only the convenience of capital raising but also the effects on the wealth of existing shareholders and the long-term performance of the firm.