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Equity Mispricing and Leverage Adjustment Costs
16 references·16 citing·34 second hopsampled
Equity Mispricing and Leverage Adjustment Costs (2011)Equity Mispricing and Leverage Adjustment…Back to the Beginning: Persistence and the Cross‐Section of Corporate Capital Structure (2008)Back to the Beginning: Persis…Valuation waves and merger activity: The empirical evidence (2005)Valuation waves and merger ac…Partial adjustment toward target capital structures (2005)Partial adjustment toward tar…Do Firms Rebalance Their Capital Structures? (2005)Do Firms Rebalance Their Capi…Testing Trade-Off and Pecking Order Predictions About Dividends and Debt (2002)Testing Trade-Off and Pecking…Market Timing and Capital Structure (2002)Market Timing and Capital Str…The theory and practice of corporate finance: evidence from the field (2001)The theory and practice of co…The Debt-Equity Choice (2001)The Debt-Equity ChoiceTesting static tradeoff against pecking order models of capital structure1This paper has benefited from comments by seminar participants at Boston College, Boston Unsiversity, Dartmouth College, Massachusetts Institute of Technology, University of Massachusetts, Ohio State University, University of California at Los Angeles and the NBER, especially Eugene Fama and Robert Gertner. The usual disclaimers apply. Funding from MIT and the Tuck School at Dartmouth College is gratefuly acknowledged. We also thank two reviewers, Richard S. Ruback and Clifford W. Smith, Jr., for helpful comments.1 (1999)Testing static tradeoff again…Initial conditions and moment restrictions in dynamic panel data models (1998)Initial conditions and moment…Industry costs of equity (1997)Industry costs of equityInitial conditions and moment restrictions in dynamic panel data models (1995)Initial conditions and moment…Earnings, Book Values, and Dividends in Equity Valuation* (1995)Earnings, Book Values, and Di…The Capital Structure Puzzle (1984)The Capital Structure PuzzleThe Capital Structure Puzzle (1984)The Capital Structure PuzzleRisk, Return, and Equilibrium: Empirical Tests (1973)Risk, Return, and Equilibrium…The effect of corporate sustainability performance on leverage adjustments (2021)The effect of corporate susta…Foreign institutional ownership and the speed of leverage adjustment: International evidence (2021)Foreign institutional ownersh…Can machines learn capital structure dynamics? (2021)Can machines learn capital st…News media coverage and corporate leverage adjustments (2019)News media coverage and corpo…Global leverage adjustments, uncertainty, and country institutional strength (2018)Global leverage adjustments, …The influence of cash flow on the speed of adjustment to the optimal capital structure (2017)The influence of cash flow on…Does local religiosity affect organizational risk-taking? Evidence from the hedge fund industry (2017)Does local religiosity affect…Debt Covenants and the Speed of Capital Structure Adjustment (2017)Debt Covenants and the Speed …Bank Competition and Leverage Adjustments (2017)Bank Competition and Leverage…The Speed of Adjustment to the Target Market Value Leverage Is Slower Than You Think (2016)The Speed of Adjustment to th…CEO's Inside Debt and Dynamics of Capital Structure (2016)CEO's Inside Debt and Dynamic…Firm crash risk, information environment, and speed of leverage adjustment (2015)Firm crash risk, information …CORPORATE GOVERNANCE AND CAPITAL STRUCTURE DYNAMICS: AN EMPIRICAL STUDY (2015)CORPORATE GOVERNANCE AND CAPI…Bank capital management: International evidence (2015)Bank capital management: Inte…In search of robust methods for dynamic panel data models in empirical corporate finance (2014)In search of robust methods f…Capital structure, equity mispricing, and stock repurchases (2014)Capital structure, equity mis…The Cost of Capital, Corporation Finance and the Theory of Investment (1958)Theory of the firm: Managerial behavior, agency costs and ownership structure (1976)Corporate financing and investment decisions when firms have information that investors do not have (1984)The Determinants of Capital Structure Choice (1988)What Do We Know about Capital Structure? Some Evidence from International Data (1995)CAPITAL ASSET PRICES: A THEORY OF MARKET EQUILIBRIUM UNDER CONDITIONS OF RISK* (1964)The Cross-Section of Expected Stock Returns (1992)Common risk factors in the returns on stocks and bonds (1993)Multifactor Explanations of Asset Pricing Anomalies (1996)Measuring Mutual Fund Performance with Characteristic‐Based Benchmarks (1997)Conditional Skewness in Asset Pricing Tests (2000)Dividend Policy, Growth, and the Valuation of Shares (1961)The Theory and Measurement of Business Income (1961)Valuation and Clean Surplus Accounting for Operating and Financial Activities* (1995)Capital markets research in accounting (2001)Does Corporate Social Responsibility Affect the Cost of Capital? (2010)The Behavior of Stock-Market Prices (1965)THE VALUATION OF RISK ASSETS AND THE SELECTION OF RISKY INVESTMENTS IN STOCK PORTFOLIOS AND CAPITAL BUDGETS**This paper is another in a series of interrelated theoretical and statistical studies of corporate financial and investment policies being made under grants from the Rockefeller Foundation, and more recently the Ford Foundation, to the Harvard Business School. The generous support for this work is most gratefully acknowledged. The author is also much indebted to his colleagues Professors Bishop, Christenson, Kahr, Raiffa, and (especially) Schlaifer, for extensive discussion and commentary on an earlier draft of this paper; but responsibility for any errors or imperfections remains strictly his own.[Professor Sharpe's paper, “Capital Asset Prices: A Theory of Market Equilibrium Under Conditions of Risk” (Journal of Finance, September 1964) appeared after this paper was in final form and on its way to the printers. My first section, which parallels the first half of his paper (with corresponding conclusions), sets the algebraic framework for sections II, III and VI, (which have no counterpart in his paper) and for section IV on the equilibrium prices of risk assets, concerning which our results differ significantly for reasons which will be explored elsewhere. Sharpe does not take up the capital budgeting problem developed in section V below.] (1975)On Persistence in Mutual Fund Performance (1997)Biases in Dynamic Models with Fixed Effects (1981)Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations (1991)Another look at the instrumental variable estimation of error-components models (1995)Econometric Analysis of Cross Section and Panel Data (2001)A finite sample correction for the variance of linear efficient two-step GMM estimators (2004)How to do Xtabond2: An Introduction to Difference and System GMM in Stata (2009)The Market for "Lemons": Quality Uncertainty and the Market Mechanism (1970)The Theory of Capital Structure (1991)Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers (1986)Capital Structure Decisions: Which Factors Are Reliably Important? (2007)Estimating Standard Errors in Finance Panel Data Sets: Comparing Approaches (2008)Managing with Style: The Effect of Managers on Firm Policies (2003)Law, finance, and economic growth in China (2005)The economic implications of corporate financial reporting (2005)CEO Overconfidence and Corporate Investment (2005)
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References

  • 1998Initial conditions and moment restrictions in dynamic panel data models22,547 cited
  • 1995Initial conditions and moment restrictions in dynamic panel data models14,749 cited
  • 1973Risk, Return, and Equilibrium: Empirical Tests14,248 cited
  • 1984The Capital Structure Puzzle7,520 cited
  • 2001The theory and practice of corporate finance: evidence from the field5,947 cited
  • 1997Industry costs of equity5,793 cited
  • 1995Earnings, Book Values, and Dividends in Equity Valuation*5,061 cited
  • 2002Market Timing and Capital Structure3,804 cited
  • 2002Testing Trade-Off and Pecking Order Predictions About Dividends and Debt3,396 cited
  • 1984The Capital Structure Puzzle3,151 cited
  • 2005Partial adjustment toward target capital structures2,038 cited
  • 2008Back to the Beginning: Persistence and the Cross‐Section of Corporate Capital Structure1,846 cited
  • 2001The Debt-Equity Choice1,797 cited
  • 1999Testing static tradeoff against pecking order models of capital structure1This paper has benefited from comments by seminar participants at Boston College, Boston Unsiversity, Dartmouth College, Massachusetts Institute of Technology, University of Massachusetts, Ohio State University, University of California at Los Angeles and the NBER, especially Eugene Fama and Robert Gertner. The usual disclaimers apply. Funding from MIT and the Tuck School at Dartmouth College is gratefuly acknowledged. We also thank two reviewers, Richard S. Ruback and Clifford W. Smith, Jr., for helpful comments.1

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1,755 cited
  • 2005Do Firms Rebalance Their Capital Structures?1,495 cited
  • 2005Valuation waves and merger activity: The empirical evidence1,287 cited
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    • 2017Debt Covenants and the Speed of Capital Structure Adjustment132 cited
    • 2014In search of robust methods for dynamic panel data models in empirical corporate finance132 cited
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    • 2021The effect of corporate sustainability performance on leverage adjustments93 cited
    • 2019News media coverage and corporate leverage adjustments90 cited
    • 2016The Speed of Adjustment to the Target Market Value Leverage Is Slower Than You Think66 cited
    • 2017Bank Competition and Leverage Adjustments65 cited
    • 2017Does local religiosity affect organizational risk-taking? Evidence from the hedge fund industry62 cited
    • 2021Foreign institutional ownership and the speed of leverage adjustment: International evidence60 cited
    • 2016CEO's Inside Debt and Dynamics of Capital Structure59 cited
    • 2021Can machines learn capital structure dynamics?54 cited
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