A Critical Review of the Effects of Stock Returns and Market Timing on Capital Structure

DOI

10.2991/978-94-6463-246-0_61How to use a DOI?

Keywords

Capital Structure; Stock returns; Market Timing

Abstract

Capital structure is regarded as the combination of debt and equity firms use to finance operations and investments. The choice of capital structure significantly impacts a company’s cost of capital, profitability, and risk profile. Among a series of factors that affect capital structure, this paper focuses on stock returns and market timing. In this review, an array of papers is analyzed to summarize current research claims regarding the influence of stock returns and market timing on capital structure. This paper also touches on other theories like the trade-off theory, the pecking order theory, and the signaling theory.

Copyright

© 2024 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Download article (PDF)

TY  - CONF
AU  - Hongru Ye
AU  - Jie Ji
AU  - Yuanyuan Zou
PY  - 2023
DA  - 2023/09/26
TI  - A Critical Review of the Effects of Stock Returns and Market Timing on Capital Structure
BT  - Proceedings of the 3rd International Conference on Economic Development and Business Culture (ICEDBC 2023)
PB  - Atlantis Press
SP  - 503
EP  - 513
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-246-0_61
DO  - 10.2991/978-94-6463-246-0_61
ID  - Ye2023
ER  -