Corporate financing decisions, managerial market timing, and real investment

• 成果类型: Article
• 署名作者: Butler, Alexander W.; Cornaggia, Jess; Grullon, Gustavo; Weston, James P.
• 署名单位: Rice University; Indiana University System; Indiana University Bloomington
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2011.05.001
• 发表日期: 2011
• 页码: 666-683
• 关键词: Financing policy; Corporate investment; Market timing

摘要

Both market timing and investment-based theories of corporate financing predict under-performance after firms raise capital, but only market timing predicts that the composition of financing (equity compared with debt) should also forecast returns. In cross-sectional tests, we find that the amount of net financing is more important than its composition in explaining future stock returns. In the time series, investment-based factor models explain abnormal stock performance following a variety of corporate financing events that previous studies link to market timing. At the aggregate level, the amount of new financing is also more important for future market returns than its composition. Overall, our joint tests reveal that measures of real investment are correlated with future returns and measures of managerial market timing are not. (C) 2011 Published by Elsevier B.V.