Chrome Extension
WeChat Mini Program
Use on ChatGLM

Equity Supply and Equity Market Timing on Capital Structure

Social Science Research Network(2017)

Cited 0|Views3
No score
Abstract
We find that the changes to individual securities accounts, which denote an equity supply condition variable, is a new and effective equity market timing measure in China. This timing measure can avoid previous criticisms of timing measure for not being independent of firm characteristics of capital structure. Regarding the debate about whether equity market timing has a persistent effect on capital structure, our empirical results show that there are more than 7 years of a persistent effect of equity market timing on firm leverage, thus supporting the equity market timing theory. Moreover, we offer evidence that the persistent timing effect on capital structure is driven by the market conditions of equity supply and equity supply conditions play an important role in corporate financial decisions.
More
Translated text
Key words
equity market timing,equity supply,capital
AI Read Science
Must-Reading Tree
Example
Generate MRT to find the research sequence of this paper
Chat Paper
Summary is being generated by the instructions you defined