Debt-Equity Choice as a Signal of Earnings Profile Over Time

Miglo, Anton

doi:10.2139/ssrn.926093

Cited by 10 publications

(11 citation statements)

References 42 publications

(20 reference statements)

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“…This evidence is consistent with previous findings that performance deteriorates after equity issuance. Miglo (2007) develops a theoretical model of the debt-equity choice based on information asymmetry. It predicts that firms with higher rate of earnings growth issue debt and firms with lower rate earnings growth issue equity.…”

Section: Regression Resultsmentioning

confidence: 99%

Equity Market Timing and Capital Structure: Evidence from Tunisia and France

Bougatef¹,

Chichti²

2010

IJBM

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This paper investigates the relevance of market timing considerations on the debt-equity choice using a panel of tunisian and french listed firms. Consistent with the market timing theory, we find that firms tend to issue equity when their market valuations are relatively higher than their book values and after market performance improvement. As a consequence, these firms become underlevraged in the short-term and this impact of equity market timing on capital structure persists beyond eight years.

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Section: Regression Resultsmentioning

confidence: 99%

Equity Market Timing and Capital Structure: Evidence from Tunisia and France

Bougatef¹,

Chichti²

2010

IJBM

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“…Signalling theory usually suggests that debt issues can be used as a positive signal of …rms performance (Leland and Pyle (1977)) as opposite to equity issues (negative signal). Jain andKini (1994), Mikkelson, Partch, andShah (1997), Loughran and Ritter (1997), and Miglo (2007and Miglo ( , 2012 analyze the long-run operating underperformance of equity issuing …rms compared to non-issuing …rms. This is indirectly consistent with negative correlation between IPO size and …rm's operating performance consistent with Miglo and Wu (2014).…”

Section: Discussionmentioning

confidence: 99%

ICO vs. Equity Financing Under Imperfect, Complex and Asymmetric Information

Miglo

2020

SSRN Journal

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This paper o¤ers a model of a …rm that raises funds for …nancing an innovative business project and chooses between ICO (initial coin o¤ering) and equity …nancing. The model is based on information problems associated with both ICO and equity …nancing well documented in literature. The model provides several implications that have not yet been tested. For example we …nd that the message complexity can be bene…tial for …rms conducting ICOs. Also high-quality projects can use ICO as a signal of quality. Thirdly the average size of projects undertaking equity …nancing is larger than that of …rms conducting ICO.

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“…One example is Miglo (2007). Consider a firm that invests in a project with cost in each of two periods, .…”

Section: Dynamic Extensionsmentioning

confidence: 99%

The Pecking Order, Trade-Off, Signaling, and Market-Timing Theories of Capital Structure: A Review

Miglo

2010

SSRN Journal

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Abstract. This paper surveys 4 major capital structure theories: trade-off, pecking order, signaling and market timing. For each theory, a basic model and its major implications are presented. These implications are compared to the available evidence. This is followed by an overview of pros and cons for each theory. A discussion of major recent papers and suggestions for future research are provided.

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Debt-Equity Choice as a Signal of Earnings Profile Over Time

Cited by 10 publications

References 42 publications

Equity Market Timing and Capital Structure: Evidence from Tunisia and France

Equity Market Timing and Capital Structure: Evidence from Tunisia and France

ICO vs. Equity Financing Under Imperfect, Complex and Asymmetric Information

The Pecking Order, Trade-Off, Signaling, and Market-Timing Theories of Capital Structure: A Review

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