Drobetz, Wolfgang; Pensa, Pascal - Wirtschaftswissenschaftliches Zentrum, Universität Basel - 2007
Using a panel of 425 European firms over the period from 1990 to 2005, we revisit Welch's (2004) finding that stock returns are the primary determinant of capital structure changes and that corporate motives for net issuing activities are largely a mystery. We document that roughly half of the...