Baker and Wurgler (2002) define a new theory of capital structure. In this theory capital structure evolves as the cumulative outcome of past attempts to time the equity market. Baker and Wurgler extend market timing theory to long-term capital structure, but their results do not clearly...

American Depository Receipts (ADRs) represent shares of foreign firms that are issued and traded in the U.S. Since an ADR and its underlying shares represent ownership interest of the same firm, they should be perfect substitutes in a perfect market. However, market imperfections such as...

This paper examines time-series patterns of external financing decisions and shows that publicly traded U.S, firms fund a much larger proportion of their financing deficit with external equity when the cost of equity capital is low. The historical values of the cost of equity capital have...

Approximately 50% of the households in America invest in the stock market. In many cases the investor's buy and hold strategy leads to negative returns. Given the stock market fluctuates up and down as time progresses, analysts examine stock prices, volumes traded and ratios to recommend buy and...

En este documento analizamos la correlación lineal y la dependencia de colas entre los fondos de cobertura denominados market neutral y la cartera de mercado condicionado en el ciclo económico. Documentamos que la baja correlación entre estos fondos y el índice S&P 500 resulta de la...