Market Timing and Capital Structure

Market Timing and Capital Structure (2002)

by Malcolm Baker , Jeffrey Wurgler

Venue:	THE JOURNAL OF FINANCE • VOL. LVII, NO. 1 • FEB. 2002
Citations:	111 - 9 self

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Datum	Value	Source
TITLE	Market Timing and Capital Structure	user correction
AUTHOR NAME	Malcolm Baker	user correction
AUTHOR NAME	Jeffrey Wurgler	user correction
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.	user correction
YEAR	2002	user correction
VENUE	THE JOURNAL OF FINANCE • VOL. LVII, NO. 1 • FEB. 2002	user correction
CITATIONS	50 found	ParsCit 1.0