The DOI matches its Crossref record; 7 of the 7 references it cites were found in a registry or an index.
Capital Structure and Stock Returns
Open accessAbstract
U.S. corporations do not issue and repurchase debt and equity to counteract the mechanistic effects of stock returns on their debt‐equity ratios. Thus over one‐ to five‐year horizons, stock returns can explain about 40 percent of debt ratio dynamics. Although corporate net issuing activity is lively and although it can explain 60 percent of debt ratio dynamics (long‐term debt issuing activity being most capital structure–relevant), corporate issuing motives remain largely a mystery. When stock returns are accounted for, many other proxies used in the literature play a much lesser role in explaining capital structure.
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Cites
Corporate financing and investment decisions when firms have information that investors do not have
Myers, S. C., & Majluf, N. S. (1984) · Journal of Financial Economics · doi:10.1016/0304-405x(84)90023-0 · Cited by 18,957
What Do We Know about Capital Structure? Some Evidence from International Data
RAJAN, R. G., & ZINGALES, L. (1995) · The Journal of Finance · doi:10.1111/j.1540-6261.1995.tb05184.x · Cited by 6,538
The Determinants of Capital Structure Choice
TITMAN, S., & WESSELS, R. (1988) · The Journal of Finance · doi:10.1111/j.1540-6261.1988.tb02585.x · Cited by 6,112
Status quo bias in decision making
Samuelson, W., & Zeckhauser, R. (1988) · Journal of Risk and Uncertainty · doi:10.1007/bf00055564 · Cited by 5,897
Miller, M. H. (1977) · The Journal of Finance · doi:10.1111/j.1540-6261.1977.tb03267.x · Cited by 2,898
Testing Static Trade-off Against Pecking Order Models of Capital Structure
Shyam-Sunder, L., & Myers, S. (1994) · doi:10.3386/w4722 · Cited by 1,165
The determinants of corporate leverage and dividend policies
Barclay, M. J., Smith, C. W., & Watts, R. L. (1995) · Journal of applied corporate finance · doi:10.1111/j.1745-6622.1995.tb00259.x · Cited by 555
Cited by
Capital structure decisions: Which factors are reliably important?
Frank, M. Z., & Goyal, V. K. (2009) · Financial Management · doi:10.1111/j.1755-053x.2009.01026.x · Cited by 2,859
The Dog That Did Not Bark: A Defense of Return Predictability
Cochrane, J. H. (2008) · Review of Financial Studies · doi:10.1093/rfs/hhm046 · Cited by 1,227
Fehr, E., & Fischbacher, U. (2002) · The Economic Journal · doi:10.1111/1468-0297.00027 · Cited by 1,061
A Review of Empirical Capital Structure Research and Directions for the Future
Graham, J. R., & Leary, M. T. (2011) · Annual Review of Financial Economics · doi:10.1146/annurev-financial-102710-144821 · Cited by 547
(2013) · International Journal of Economics and Financial Issues · Cited by 65
Metadata
- Authors
- Welch, I.
- Venue
- Journal of Political Economy
- Publisher
- University of Chicago Press
- Published
- 2004-02
- Volume
- 112
- Issue
- 1
- Pages
- 106-132
- ISSN
- 0022-3808 (ISSN-L)
- 1537-534X
- OpenAlex
- W3123206484
- Cited by
- 1,249
- References
- 7
- FWCI
- 202.73
- Type
- journal article
- Language
- en
- Open access
- green
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