Timing, investment opportunities, managerial discretion, and the security issue decision

This paper investigates the ability of the pecking-order model, the agency model, and the timing model to explain arms' decisions whether to issue debt or equity, the stock price reaction to their decisions, and their actions afterward. We find strong support for the agency model. Firms often depart from the pecking order because of agency considerations. We fail to find support for the timing model.
Publisher
ELSEVIER SCIENCE SA LAUSANNE
Issue Date
1996-10
Language
ENG
Keywords

SEASONED EQUITY OFFERINGS; CAPITAL STRUCTURE; ASYMMETRIC INFORMATION; FINANCING POLICIES; AGENCY COSTS; CORPORATE; DETERMINANTS; DIVIDEND; PUZZLE; MARKET

Citation

JOURNAL OF FINANCIAL ECONOMICS, v.42, no.2, pp.159 - 185

ISSN
0304-405X
DOI
10.1016/0304-405X(96)00881-1
URI
http://hdl.handle.net/10203/4067
Appears in Collection
MT-Journal Papers(저널논문)
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