Shareholder gains from callable‐bond refundings

Douglas Emery, Wilbur G. Lewellen

Research output: Contribution to journalArticlepeer-review

1 Scopus citations


A re‐examination indicates that current procedures for measuring the benefit realized by shareholders when a firm calls and refunds an outstanding debt obligation are mis‐specified. The key to a proper measurement is found to lie in the identification of the extinguished remaining‐time‐to‐maturity value of the exercised option on the called debt. A simple procedure for assessing that value is provided and incorporated into a corrected measure of the gains from a callable‐bond refunding.

Original languageEnglish (US)
Pages (from-to)57-63
Number of pages7
JournalManagerial and Decision Economics
Issue number1
StatePublished - Jan 1 1990
Externally publishedYes

ASJC Scopus subject areas

  • Business and International Management
  • Strategy and Management
  • Management Science and Operations Research
  • Management of Technology and Innovation


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