Publication Type
Journal Article
Version
submittedVersion
Publication Date
2-2021
Abstract
We assume executives managing corporate financial policy consider the firm's current and target leverage, investment plans, anticipated cash flows, and consequences of alternative sequences of financing transactions, operating within efficient markets. Our analysis yields time-series and cross-sectional predictions for management of investment spending and leverage; use of maturity, priority, and convertibility covenants; and management of dividends, share repurchases, cash balances, and credit lines. Our evidence from 8608 SEOs covering 1970–2015 is consistent with implications of our theory, helps to resolve an array of issues in corporate finance, and offers a step toward a more unified analysis of rational corporate financial management.
Keywords
Capital structure, Seasoned equity offerings, Financial management, Tradeoff, Pecking-order, Market-timing
Discipline
Corporate Finance | Finance and Financial Management
Research Areas
Finance
Publication
Journal of Corporate Finance
Volume
66
First Page
1
Last Page
29
ISSN
0929-1199
Identifier
10.1016/j.jcorpfin.2020.101700
Publisher
Elsevier
Citation
BARCLAY, Michael J.; FU, Fangjian; and SMITH, Clifford W..
Seasoned equity offerings and corporate financial management. (2021). Journal of Corporate Finance. 66, 1-29.
Available at: https://ink.library.smu.edu.sg/lkcsb_research/6994
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.1016/j.jcorpfin.2020.101700