### Table 11. Temporary changes in the market-to-book ratio and the long-run effect on investment. Fama-

2002

"... In PAGE 27: ... The fact that cash balances do not fall with t suggests that this will not be the case. Indeed, Table11 shows that b 2 is reliably negative for ten years. 9 Contemporaneous levels of the market-to-book ratio have a strong effect on investment, but temporary fluctuations do not have a lasting impact.... ..."

Cited by 15

### Table 4. Summary statistics of measures of the market-to-book ratio. Means, standard deviations and pairwise correlations for three measures of the market-

2002

"... In PAGE 13: ... We compute both measures using the time series of actual market-to-book ratios, and we drop firm- year observations where M/ B efwa exceeds 10 and M/ B max exceeds 20. 4 Table4 summarizes these measures of historical variation in market-to-book. The lagged value of market-to-book is included for comparison.... ..."

Cited by 15

### Table 2. Summary statistics of potential determinants of capital structure. Means and standard deviations for lagged measures of the market-to-book ratio,

2002

"... In PAGE 9: ... These numbers reflect the statistical dominance of the many newly public firms at the end of the sample, in addition to any real trends in the financing practices of established firms. Table2 presents summary statistics for four variables that Rajan and Zingales (1995) show to be related to capital structure in several developed countries. The four variables are market-to-book, asset tangibility, profitability, and size.... In PAGE 10: ... Firm size is measured as the log of net sales [Item 12]. The variables are lagged once so that, for example, the IPO+1 row in Table2 summarizes the variables as of the IPO year. The market-to-book ratio declines steadily with firm age, while asset tangibility and firm size both rise with firm age.... In PAGE 11: ... For a one-year-old firm, a one-standard-deviation increase in market-to- book (1.42 from Table2 ) increases net equity issues by 4.97 percentage points, which is 33 percent of one standard deviation (15.... ..."

Cited by 15

### Table 9. Temporary changes in the market-to-book ratio and the long-run effect on capital structure. Fama-MacBeth regressions of current and future

2002

"... In PAGE 23: ... By simultaneously estimating equation (7), we can also put confidence intervals around the two ratios. Table9 reports the results. The columns on the left report Fama-MacBeth estimates and t-statistics for b 21 , b 22 , b 23 , and b 13 .... In PAGE 26: ...79 from Table 10 divided by 7.46 from Table9 ) of the impact of M/ B efwa is explained by larger cash balances. The impact is necessarily less than 100 percent because debt issues raise cash balances and equity issued in the context of mergers do not.... ..."

Cited by 15

### Table 10. Temporary changes in the market-to-book ratio and the long-run effect on cash balances. Fama-MacBeth regressions of current and future cash

2002

"... In PAGE 26: ... In terms of the coefficients, b 21 should be small, and b 22 and b 23 should be even smaller. Table10 reports the results. The left columns report Fama-MacBeth estimates and t- statistics for b 21 , b 22 , and b 23 .... In PAGE 26: ...imited to survivors, the coefficient drops from 2.79 to 1.19. For the full sample, about 37 percent (2.79 from Table10 divided by 7.46 from Table 9) of the impact of M/ B efwa is explained by larger cash balances.... ..."

Cited by 15

### Table 3. Determinants of changes in the equity-to-assets ratio. OLS regressions of changes in the equity-to-assets ratio on the market-to-book ratio, fixed

2002

"... In PAGE 11: ... Asset tangibility and size appear much less important. Table3 also shows the impact of these variables on more passive components of capital... In PAGE 15: ... Mechanically, its explanatory power reflects the combined influence of three facts. First, changes in capital structure are more likely to be in the direction of equity when the market-to-book ratio is high, as we documented in Table3 . Second, these changes in capital structure are more pronounced around external financing events.... In PAGE 20: ...hird row includes IPO year dummy variables. The fourth row includes five lags of profitability. This better controls for the possibility that M/ B efwa captures past profitability better than one lag of profitability. The fifth row includes a wider set of capital structure determinants used in Fama and French (2000) (see their Table3 ). In addition to M/B t -1 , Fama and French include common dividends over assets, common dividends over book equity, depreciation over assets, a dummy if research and development expenditures are positive, research and development over assets, and size measured by the log of assets.... ..."

Cited by 15

### Table 8. Robustness checks. OLS and Fama-MacBeth regressions of the equity-to-assets ratio on the market-to-book ratio, fixed assets, profitability, and firm

2002

"... In PAGE 20: ...e. Robustness Checks In Table8 we consider a variety of robustness checks on the effect of M/ B efwa . In all cases the results are not substantially affected.... ..."

Cited by 15

### Table 4 summarizes these measures of historical variation in market-to-book. The lagged

2002

Cited by 15

### Table 4. Betas of Predicted High Portfolios

1999

"... In PAGE 17: ... They tend pay out low dividends, and tend not to be value companies, but rather growth companies, with high market-to-book ratios. A more formal adjustment for risk using the Capital Asset Pricing Model is made in Table4 , which shows regression-based estimates of the betas (gearing to the equally-weighted index) and alphas (excess returns not due to this gearing) for actual and predicted H and L portfolios. The actual H portfolio does have a high beta, around 1.... ..."

Cited by 2

### Table 6 Regressions of abnormal returns on ranks of standardized unexpected earnings (SUE), market-to-book (MTB), size (MVE), NET PURCHASES, and momentum by affluence / trading-frequency investor classes

"... In PAGE 27: ...25 individuals are driving future returns, we run similar returns regressions for each of the investor classes. We report the results for affluence / trading-frequency classes in Table6 . Because using subclasses reduces our sample size, the statistical significance is generally weaker.... ..."