The equity share in new issues and aggregate stock returns

The equity share in new issues and aggregate stock returns (2000)

by Malcolm Baker , Jeffrey Wurgler

Venue:	JOURNAL OF FINANCE
Citations:	91 - 14 self

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Datum	Value	Source
TITLE	The equity share in new issues and aggregate stock returns	user correction
AUTHOR NAME	Malcolm Baker	user correction
AUTHOR NAME	Jeffrey Wurgler	user correction
ABSTRACT	The share of equity issues in total new equity and debt issues is a strong predictor of U.S. stock market returns between 1928 and 1997. In particular, firms issue relatively more equity than debt just before periods of low market returns. The equity share in new issues has stable predictive power in both halves of the sample period and after controlling for other known predictors. We do not find support for efficient market explanations of the results. Instead, the fact that the equity share sometimes predicts significantly negative market returns suggests inefficiency and that firms time the market component of their returns when issuing securities.	user correction
YEAR	2000	user correction
VENUE	JOURNAL OF FINANCE	user correction
VENUE TYPE	JOURNAL	INFERENCE
PAGES	2219--2257	INFERENCE
VOLUME	55	user correction
NUMBER	5	user correction
CITATIONS	57 found	ParsCit 1.0