This study empirically examines whether managers manipulate reported income through the timing of sales of long-lived assets and investments. Several empirical implications of the income-smoothing and debt-equity hypothesis in the context of asset sales were tested. The findings are consistent with the timing of asset sales by managers so that the recognized accounting income from these sales s...

Aggregate statistics readily indicate why so many observers of financial markets in the United States are concerned about the balance between debt and equity in the corporate financial decision. Exceeding zero in most years before 1984, net equity issues by U.S. nonfinancial corporations have been negative in each year since. Net redemptions averaged approximately $80 billion annually during th...

The capital market in Indonesia is currently experiencing very rapid development from year to year, as evidenced by the increasing number of public companies every year. Banking one sub-sectors included LQ45 index with its average share having highest capitalization among other sub-sectors. Indonesia, including banking sub-sector inseparable supporting factors are internal seen company's financ...

In this study, it is examined whether changes in the stock market index can be explained by the change in financial ratios. Financial statements of 11 conventional and 2 participation banks for a total of 13 banks (representing the essential part of the Turkish Banking Sector and constituting the BIST XBANK Stock Index) announced on a quarterly basis from 2002 to 2013 were extracted from the Pu...

Using a property-level data set of houses in Los Angeles County, I estimate that 30% of the recent surge in mortgage defaults is attributable to early home-buyers who would not have defaulted had they not borrowed against the rising value of their homes during the boom. I develop and estimate a structural model capable of explaining the patterns of both equity extraction and default observed am...

Project background: one common strategy within the capital structure relative value umbrella is trading credit versus equity. Credit and equity are both claims on the assets of a company. Debt securities typically pay a fixed coupon to the holder as long as the company does not default, but offers no additional upside if the company’s performance improves and its assets become more valuable. On...

Equity marginal q is the change in market value of a company’s equity in conjunction with a oneunit unexpected change in its asset base. Hence, it is a profitability index that evaluates a firm’s capital budgeting decisions at the margin. In this paper, we estimate the equity marginal q for real estate-managing public corporations, namely, real estate investment trusts (REITs), in an attempt to...