The purpose of this study is to empirically clarify the economic motivations of companies that implement "recap CB," a capital policy that simultaneously issues convertible bonds and acquires treasury stock. As a result of the analysis, we support the implementation of this capital policy with the aim of achieving the exogenous standard of ROE by improving profitability indicators, realizing the capital structure that management considers optimal, and providing arbitrage opportunities associated with the issuance of convertible bonds. Evidence has been obtained, and it is expected that this study will contribute to the accumulation of research on the determinants of composite capital policy.
