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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

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.

Suggested Citation

  • Seifert, Bruce & Gonenc, Halit, 2012. "Issuing and repurchasing: The influence of mispricing, corporate life cycle and financing waves," Journal of Multinational Financial Management, Elsevier, vol. 22(3), pages 66-81.
  • Handle: RePEc:eee:mulfin:v:22:y:2012:i:3:p:66-81
    DOI: 10.1016/j.mulfin.2012.02.001
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    References listed on IDEAS

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    More about this item

    Keywords

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

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets

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