Does Market Timing Drive Capital Structure? Empirical Evidence from an Emerging Market
The purpose of this study is to test how equity market timing affects capital structure from the perspective of IPO (Initial Public Offering) event in ISE for the period between 1999-2008. Our dataset comprises of all firms (75 firms) that went public from the period of January 1999 to December 2008 in Turkey that are available in ISE database. We analyse the market timing theory by applying cross sectional regression method. For this purpose, first, we test the impact of market timing on the amount of equity issued by IPO firms. Second we examine the impact of market timing on capital structure. We conclude that market timing theory is not valid for Turkey.
Volume (Year): 3 (2013)
Issue (Month): 1 ()
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References listed on IDEAS
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- W. Allard Bruinshoofd & Leo de Haan, 2012.
"Market timing and corporate capital structure: a transatlantic comparison,"
Taylor & Francis Journals, vol. 44(28), pages 3691-3703, October.
- Allard Bruinshoofd & Leo de Haan, 2007. "Market timing and corporate capital structure - A transatlantic comparison," DNB Working Papers 144, Netherlands Central Bank, Research Department.
- Allard Bruinshoofd & Leo De Haan, 2011. "Market timing and corporate capital structure: a transatlantic comparison," Post-Print hal-00716627, HAL.
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- Jeffrey A. Wurgler & Malcolm P. Baker, 2001. "Market Timing and Capital Structure," Yale School of Management Working Papers ysm181, Yale School of Management.
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- Elliott, William B. & Koëter-Kant, Johanna & Warr, Richard S., 2008. "Market timing and the debt-equity choice," Journal of Financial Intermediation, Elsevier, vol. 17(2), pages 175-197, April.
- Tijs de Bie & Leo de Haan, 2004. "Does market timing drive capital structures? A panel data study for Dutch firms," DNB Working Papers 016, Netherlands Central Bank, Research Department.
- Ming Dong & Igor Loncarski & Jenke ter Horst & Chris Veld, 2012. "What Drives Security Issuance Decisions: Market Timing, Pecking Order, or Both?," Financial Management, Financial Management Association International, vol. 41(3), pages 637-663, 09. Full references (including those not matched with items on IDEAS)
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