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Issuing and repurchasing: The influence of mispricing, corporate life cycle and financing waves

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  • Seifert, Bruce
  • Gonenc, Halit
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    Abstract

    This paper examines the impact of mispricing, corporate life cycle, and financing waves on the debt/equity decision when firms (1) acquire funds and (2) repurchase funds by using a large international data set from 47 countries for the period 1984–2006. Our results support the mispricing hypothesis and the corporate life cycle hypothesis for both the acquisition of new funds and the repurchase of funds. However, our findings are consistent with the financing wave hypothesis only for repurchases of firms residing in common law countries as well as market-based countries.

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    File URL: http://www.sciencedirect.com/science/article/pii/S1042444X12000059
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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Multinational Financial Management.

    Volume (Year): 22 (2012)
    Issue (Month): 3 ()
    Pages: 66-81

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    Handle: RePEc:eee:mulfin:v:22:y:2012:i:3:p:66-81

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    Web page: http://www.elsevier.com/locate/mulfin

    Related research

    Keywords: Equity financing; Debt financing; Repurchases; Mispricing; Life cycle; Financing waves;

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    References

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