Interesting Paper, from Victor Niederhoffer
Interesting paper (Capital Structure Dynamics and Stock Returns, 2006) on debt ratio as a predictor of stock returns relating to companies issuing equity reducing debt ratio when stocks too high and against signaling theory that companies issue debt when they are sure they can pay the interest back. Calls for an update.
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=685462
Comments
james on October 10, 2017 7:42 pm
The link to the paper is broken. Looks interesting–could this be updated.