마켓타이밍과 자본구조간의 관계 분석

It is well known that firms are more likely to issue equity when their market values are high, relative to book and past market values, and to repurchase equity when their market values are low. This paper examines the motivation to explain capital structure by market timing.We regress leverage ratios on the Rajan and Zingales(1995) control variables and Baker and Wurgler(2002) market timing variable that summarize the relevant historical variation in market valuations. The market timing variable is the "external finance weighted-average" market-to-book ratio.The main results of this study can be summarized as follows.First, the capital structure determinants identified by Rajan and Zingales(1995) have significant effects on changes in leverage ratios and their components of IPO firms. So to speak, the changes in leverage ratios reflect the total effect of those determinants on net equity issues, net debt issues, and newly retained earnings.Second, the market timing variable identified by Baker and Wurgler(2002) has significant negative effects on leverage ratios, cumulative changes in leverage ratios, and long-term persistence of leverage ratios. These evidences suggest that IPO firms raise equity when their firm values are high.