EconPapers    
Economics at your fingertips  
 

Market timing and corporate capital structure: a transatlantic comparison

Allard Bruinshoofd () and Leo de Haan ()
Additional contact information
Allard Bruinshoofd: Economic Research - Rabobank

Post-Print from HAL

Abstract: This paper provides comparative international evidence on the effect of market timing on corporate capital structures using panel data for US, UK, and continental European firms. We document that the empirical regularity found for US firms, that historical market-to-book ratios and corporate leverage correlate negatively, does not extend to UK and continental European firms. The latter tend to raise debt rather than equity when stock prices are high, thus sticking more closely to a pecking order in which debt is preferred over external equity.

Keywords: Social; Sciences; &; Humanities (search for similar items in EconPapers)
Date: 2011-07-11
Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-00716627
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Published in Applied Economics, Taylor & Francis (Routledge), 2011, pp.1. ⟨10.1080/00036846.2011.581211⟩

Downloads: (external link)
https://hal.archives-ouvertes.fr/hal-00716627/document (application/pdf)

Related works:
Journal Article: Market timing and corporate capital structure: a transatlantic comparison (2012) Downloads
Working Paper: Market timing and corporate capital structure - A transatlantic comparison (2007) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-00716627

DOI: 10.1080/00036846.2011.581211

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().

 
Page updated 2020-09-17
Handle: RePEc:hal:journl:hal-00716627