The Profitability and Equity Financing of Style Groups: 1926-2006
Year: 2008
Type: preprint
Abstract: We extend the evidence of Fama and French (1995) on the post-1962 profitability and equity financing of firms in different style groups (small versus big, value versus growth) to 1926-2006. The emphasis is on whether equity-financed investment varies with cashflows and price-to-book ratios in ways that support or violate the pecking order model of Myers (1984) or the Q theory of investment. The long-term perspective from the results for 1926-2006 provides insights into inferences about the pecking order and Q theory drawn from previous work that focuses on shorter, more recent periods. * Graduate School of Business, University of Chicago (Fama), and Amos Tuck School of Business, Dartmouth College (French).
Source: SSRN Electronic Journal
Authors: Eugene F. Fama, Kenneth R. French
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2917447495