How Persistent is the Impact of Market Timing on Capital Structure

By Aydoğan Alti. 2006

564 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/74b990f787ecdb152becc316ae00e6f58b4cd376

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Citations in the corpus

Dynamic Capital Structure Adjustment and the Impact of Fractional Dependent Variables (2015, unknown): “…and French (2002) and Kayhan and Titman (2007) find very low adjustment speeds of 7% to 18%; Lemmon, Roberts, and Zender (2008) and Huang and Ritter (2009) estimate about 25%; while Flannery and Rangan (2006), Leary and Roberts (2005), and Alti (2006) find relatively fast adjustments of 35% to 40%.”
On the Relation Between the Market-to-Book Ratio, Growth Opportunity, and Leverage Ratio (2006, unknown): “[1] Alti, A.”
Macroeconomic Conditions and Capital Structure Adjustment Speed (2010, unknown): “Alti (2006) suggests that the impact of market timing activities in IPOs on leverage vanishes completely in two years.”
Target Behavior and Financing: How Conclusive is the Evidence? (2009, unknown): “Since firms in our simulated samples are not guided by tradeoff or pecking order behavior, it does not appear that either of these theories explains the negative relationship.”
Equity Mispricing and Leverage Adjustment Costs (2012, unknown): “Later studies by Leary and Roberts (2005), Alti (2006), Flannery and Rangan (2006), and Lemmon et al.”
Trade-Off and Pecking Order Theories of Debt (2007, background): “Alti (2004) also finds much faster adjustment of leverage.”
Capital Market-Driven Corporate Finance (2009, background): “There is some debate over the persistence of these effects, with Baker &Wurgler (2002), Huang & Ritter (2008), and Chen & Zhao (2005) arguing that there is a long-term effect on capital structure, and Leary & Roberts (2005), Alti (2006), and Kayhan & Titman (2007) claiming less persistence.”
Firms' Histories and Their Capital Structures (2004, unknown): “7 Alti (2005), in a study of IPOs, measures timing by whether firms go public in hot IPO markets.”
Capital structure and law around the world (2011, unknown): “This theory has been disputed by many authors: Frank and Goyal (2003) show that market conditions affect the process of debt adjustments, but the same should not be assumed for equity; Alti (2003) shows that market timing is a short-term phenomenon; Hovakimian (2006), on the other hand, according to”
Empirical Capital Structure: A Review (2009, unknown): “A final related study comes from Alti (2006), who also provides evidence suggesting that at least for younger firms, capital structure persistence is much weaker than documented in Baker and Wurgler (2002).”
Equity market timing and capital structure: International evidence (2008, unknown): “Similarly, Flannery and Rangan (2006), Kayhan and Titman (2007), Alti (2006) and Hovakimian (2006) suggest that the impact of equity market timing on leverage is short lived.”
Board of Directors’ Composition and Capital Structure (2014, unknown): “Alti (2006) tested this market timing hypothesis and found that the negative effect of timing equity issues on financial leverage quickly reverses.”
IPO waves, product market competition, and the going public decision: Theory and evidence (2011, background): “Similar to Panel 45By defining hot and cold periods according to total monthly IPO volume (for all industries), Alti (2006) also finds that hot-market issuers raise more equity than needed, adding more of the IPO proceeds to their cash and short-term investments than to other long-term assets.”