Why Does Equity Capital Flow out of High Tobin's q Industries?
- Authors
- Lee, Dong Wook; Shin, Hyun-Han; Stulz, Rene M.
- Issue Date
- 4월-2021
- Publisher
- OXFORD UNIV PRESS INC
- Citation
- REVIEW OF FINANCIAL STUDIES, v.34, no.4, pp.1867 - 1906
- Indexed
- SSCI
SCOPUS
- Journal Title
- REVIEW OF FINANCIAL STUDIES
- Volume
- 34
- Number
- 4
- Start Page
- 1867
- End Page
- 1906
- URI
- https://scholar.korea.ac.kr/handle/2021.sw.korea/128292
- DOI
- 10.1093/rfs/hhaa086
- ISSN
- 0893-9454
- Abstract
- High Tobin's industries receive more funding from capital markets than low Tobin's industries from 1971 to 1996. Since then, the opposite is true. The key to understanding this shift is that large firms, for which is more a proxy for rents than investment opportunities, have become more important within industries. For these firms, repurchases but not capital expenditures increase in the cross-section with , so that explains the variation of repurchases more than of capital expenditures. Consequently, equity capital flows out of high industries because for these industries stock repurchases are high and issuances are low.
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Collections - Korea University Business School > Department of Business Administration > 1. Journal Articles
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