Purpose – The purpose of this paper is to instruct upper level business students on the intricacies of the debt‐equity choice with the emphasis on showing the interrelation of this choice with the plowback‐payout choice. Design/methodology/approach – The paper is designed around a...

Purpose: The purpose of this paper is to explore if hedge fund variables (HFVs) are associated with long-run compounded raw returns (CRRs) for seasoned equity offering (SEO) firms for a six-year window around the offering month for firms undergoing SEOs. Design/methodology/approach: The event...

We examine the wealth impact of inside ownership on firms announcing leverage increases by issuing senior securities that retire junior securities. We find the market response to leverage increase announcements is influenced by the percentage of inside ownership. We show that firms with greater...