Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

Market Timing and Capital Structure

Market Timing and Capital Structure ABSTRACT It is well known that firms are more likely to issue equity when their market values are high, relative to book and past market values, and to repurchase equity when their market values are low. We document that the resulting effects on capital structure are very persistent. As a consequence, current capital structure is strongly related to historical market values. The results suggest the theory that capital structure is the cumulative outcome of past attempts to time the equity market. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png The Journal of Finance Wiley

Market Timing and Capital Structure

The Journal of Finance , Volume 57 (1) – Feb 1, 2002

Loading next page...
 
/lp/wiley/market-timing-and-capital-structure-v0od9lqJWt

References (59)

Publisher
Wiley
Copyright
© American Finance Association
ISSN
0022-1082
eISSN
1540-6261
DOI
10.1111/1540-6261.00414
Publisher site
See Article on Publisher Site

Abstract

ABSTRACT It is well known that firms are more likely to issue equity when their market values are high, relative to book and past market values, and to repurchase equity when their market values are low. We document that the resulting effects on capital structure are very persistent. As a consequence, current capital structure is strongly related to historical market values. The results suggest the theory that capital structure is the cumulative outcome of past attempts to time the equity market.

Journal

The Journal of FinanceWiley

Published: Feb 1, 2002

There are no references for this article.