Market Timing and Capital Structure: Evidence for Dutch FirmsReport as inadecuate




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De Economist

, Volume 155, Issue 2, pp 183–206

First Online: 13 June 2007 Summary

We examine market timing and its effects on capital structures for a sample of Dutch listed firms and a sub-sample of Dutch initial public offering IPO firms. The results yield evidence of market timing. Stock price run-ups increase the probabilities of equity and dual issues. Further, the effects of stock price run-ups on the choices between issuance of debt, equity or both are consistent with the predictions of the market timing hypothesis. However, in contrast to the existing evidence for US firms, we do not find persistent effects of market timing on capital structures of Dutch firms.

Keywordscapital structure market timing This paper has benefited from useful comments from two anonymous referees, Allard Bruinshoofd, Frank de Jong, Jeroen Ligterink, seminar participants at De Nederlandsche Bank, and discussions at the 6th ONS Analysis of Enterprise Microdata Conference Cardiff 2005.

JEL CodesC23 G32  Download to read the full article text



Author: Tijs De Bie - Leo De Haan

Source: https://link.springer.com/



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