A Fast Literature Search Engine based on top-quality journals, by Dr. Mingze Gao.
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Journals
Publication year
Market Timing and Capital Structure
Resource type
Authors/contributors
- Baker, Malcolm (Author)
- Wurgler, Jeffrey (Author)
Title
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.
Publication
The Journal of Finance
Volume
57
Issue
1
Pages
1-32
Date
2002
Citation
Baker, M., & Wurgler, J. (2002). Market Timing and Capital Structure. The Journal of Finance, 57, 1–32.
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