The determinants of the hybrid security issuance decision for Australian firms

Jo Ann Suchard, Manohar Singh

Research output: Contribution to journalArticlepeer-review

13 Scopus citations


The Australian capital market has number of distinct characteristics that distinguish it from typical U.S. and European markets. There is a limited listed debt market where most firms use bank debt, convertible debt is not callable and stand alone warrants are used to raise capital. This paper examines the determinants of security choice for hybrid issuers in the Australian market. The results support the pecking order model and the impact of financial distress costs and taxation. Alternatively, the results provide support for the sequential financing model where firms with high profitability use convertible debt and firms with low profitability use warrants, to solve the sequential financing problem.

Original languageEnglish (US)
Pages (from-to)269-290
Number of pages22
JournalPacific Basin Finance Journal
Issue number3
StatePublished - Jun 2006

All Science Journal Classification (ASJC) codes

  • Finance
  • Economics and Econometrics


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