Conversion privileges? The effect of convertible debt on strategic emphasis and firm performance

Yuan Wen, Babu John Mariadoss, Sheng Bi*

*此作品的通讯作者

科研成果: 期刊稿件文章同行评审

摘要

Convertible debt is one of the most important financial strategies. However, how convertible debt affects marketing decision-making remains unknown. Our study tends to answer two research questions: (1) How does convertible debt impact firm performance through strategic emphasis? (2) How does the impact of convertible debt on firm performance vary under market turbulence? Drawing on the agency theory, we found that convertible debt results in strategic emphasis shifting into exploitation activities, which ultimately has a negative influence on company performance. In addition, we also found that in a turbulent market, companies that issue convertible debt would invest more in exploitative activities than in a non-turbulent market, which would result in a more negative influence on firm performance. Our research contributes to convertible debt and strategic emphasis literature. For management teams, our research provides evidence that the marketing consequences of convertible debt need to be carefully considered in strategic decision-making.

源语言英语
期刊Journal of Marketing Theory and Practice
DOI
出版状态已接受/待刊 - 2025

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引用此

Wen, Y., John Mariadoss, B., & Bi, S. (已接受/印刷中). Conversion privileges? The effect of convertible debt on strategic emphasis and firm performance. Journal of Marketing Theory and Practice. https://doi.org/10.1080/10696679.2024.2446149