Issuing and repurchasing: The influence of mispricing, corporate life cycle and financing waves

Bruce Seifert and Halit Gonenc

Journal of Multinational Financial Management, 2012, vol. 22, issue 3, 66-81

Abstract: This paper examines the impact of mispricing, corporate life cycle, and financing waves on the debt/equity decision when firms (1) acquire funds and (2) repurchase funds by using a large international data set from 47 countries for the period 1984–2006. Our results support the mispricing hypothesis and the corporate life cycle hypothesis for both the acquisition of new funds and the repurchase of funds. However, our findings are consistent with the financing wave hypothesis only for repurchases of firms residing in common law countries as well as market-based countries.

Keywords: Equity financing; Debt financing; Repurchases; Mispricing; Life cycle; Financing waves (search for similar items in EconPapers)
JEL-codes: G15 G32 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:mulfin:v:22:y:2012:i:3:p:66-81

DOI: 10.1016/j.mulfin.2012.02.001

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