Which version of the equity market timing affects capital structure, perceived mispricing or adverse selection?
Description:
Baker and Wurgler (2002) define a new theory of capital structure. In this theory capital structure evolves as the cumulative outcome of past attempts to time the equity market. Baker and Wurgler extend market timing theory to long-term capital structure, but their results do not clearly distinguish between the two versions of market timing: perceived mispricing and adverse selection. The main purpose of this dissertation is to empirically identify the relative importance of these two explanati…
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Date:
August 2004
Creator:
Chazi, Abdelaziz
Partner:
UNT Libraries