Recent studies find that aggregate equity issues predict market returns in the U.S. market. In this research, I examine whether such predictive effect exists in the global stock market. I use an aggregate approach across 41 countries with diverse legal regimes. The results confirm the presence...

In this research paper we examine the determinants of capital structure using a large panel of firms from 31 countries, all with different legal systems and different levels of investor protection. Our results confirm that institutional variables play an important role in a firm's capital...

This study examines the Merton (1987) 'investor recognition' hypothesis, which postulates that an increase in the total number of investors with prior knowledge of a firm will lower the expected returns of investors by reducing the 'shadow costs' arising from the lack of knowledge of a...