Market Timing and Capital Structure

By Malcolm P. Baker, Jeffrey Wurgler. 2001

3,816 citations recorded by the source corpus.

Subfields: Accounting, Finance, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/0d8340e6c9586672ffe370c4db00eb862bc9167e

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

1. V. Dang
2. Murillo Campello
3. Jarrad Harford
4. Heitor Almeida
5. Michael R. Roberts
6. R. Duchin
7. Malcolm P. Baker
8. René M. Stulz

In Finance

1. David A. Hirshleifer
2. V. Dang
3. Malcolm P. Baker
4. Michael R. Roberts
5. Murillo Campello
6. Jarrad Harford
7. Vahap Bülent Uysal
8. R. Duchin

In Strategy and Management

1. Murillo Campello
2. Jarrad Harford
3. David J. Denis
4. Heitor Almeida
5. V. Dang
6. Jay R. Ritter
7. Mark T. Leary
8. René M. Stulz

Citations in the corpus

• Managerial Actions in Response to a Market Downturn: Valuation Effects of Name Changes in the Dot.com Decline (2005, neutral): “These monthly variables are related to the annual sentiment variables used in Baker and Wurgler (2003). The monthly sentiment proxies are the initial 1-day return on IPOs (IPORET), number of IPOs (IPONUM) and the average of the daily dividend premium in a month (MDIVPREM), where the dividend premium”
• The Asset Growth Effect: Insights from International Equity Markets (2013, background): “…of corporate managers (e.g., Titman, Wei, and Xie, 2004), 2) capital structure market timing when raising and retiring external financing (e.g., Baker and Wurgler, 2002), 3) earnings management prior to financing activities or acquisitions (e.g., Teoh, Welch, and Wong, 1998a; 1998b), and 4)…”
• Empirical Evidence of Risk Shifting in Financially Distressed Firms (2008, methodology): “Following Baker and Wurgler (2002), I define net equity issue Table IV Regressions of Asset Return on an Interactive Variable between Investment and Financial Distress in Periods of Low- and High-Expected Volatility The dependent variable is the firm’s asset return in a given year, as derived from…”
• Leverage Dynamics over the Business Cycle (2016, neutral): “Furthermore, according to this literature, more corporate debt would be issued when equity valuation levels are low and/or interest rates are low (see, for example, Baker and Wurgler (2002) for empirical evidence on the market timing view of capital structure dynamics).”
• The Effect of Auditor Quality on Financing Decisions (2009, methodology): “The recent literature looks at a company’s debt ratio to investigate the implications for issuance activity in response to market conditions (see Baker and Wurgler 2002, Leary and Roberts 2005, and Kayhan and Titman 2007 for examples of papers using this approach). The essential idea is that if comp”
• Information Asymmetry and Firms' Credit Market Access: Evidence from Moody's Credit Rating Format Refinement (2009, methodology): “The market-to-book ratio has been used as a proxy for growth opportunities and is expected to be positively correlated with firms’ external financing (Baker and Wurgler (2002)).”
• Institutions and corporate capital structure in the MENA region (2016, neutral): “It rather argues that a fi rm's observed leverage re fl ects managers' past attempts to time the equity market by issuing overvalued stock shares (Baker and Wurgler, 2002).”
• Market Timing, Investment, and Risk Management (2012, positive): “Such behavior is consistent with the findings in Baker and Wurgler (2002), DeAngelo, DeAngelo, and Stulz (2010), Fama and French (2005), and Huang and Ritter (2009).”
• Does stock price informativeness affect labor investment efficiency (2016, background): “Specifically, managers tend to invest more when their stock is overpriced (Baker and Wurgler, 2002; Baker, Stein, and Wurgler, 2003).”