This study looks into the determinants of capital structure in the absence of tax incentives. I find that attributes normally associated with debt use for taxable corporations are likewise correlated with debt use in the taxexempt sector. These include the organisation's age, asset tangibility, governance structure, industry grouping, liquidity, profitability, and size. Tax-exempt sectorspecific findings indicate that debt use is also related to the size of the organisation's endowment and the amount of voluntary income. This study also demonstrates the portability of the theory of capital structure by extending the findings in Smith (2010) beyond the United States.
Before 1975, the mean weekend rate of return on the equal-weight (value-weight) stock market portfolio is significant −18bp (−19bp). After 1975, it is insignificant −5bp (−1bp). This break date is determined by a structural break test with unknown break date. The weekend effect is no longer an anomaly.
We produce convincing new evidence that the turn of the year (TOY), turn of the month (TOM), and January effects are critically dependent on the sample period over which they are estimated. The TOY effect is significant in the value‐weight portfolio from 1962 to 1997. It becomes insignificant in the medium‐size portfolio after 1994 and in the equal‐weight and low‐size portfolios after 1997. The TOM effect becomes insignificant in the value‐weight and high‐size portfolios after 1978, in the equal‐weight and medium‐size portfolios after 1997, and in the low‐size portfolio after 1998. January effects are significant in some subperiods but not others.
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