Dong, Ming; Hirshleifer, David; Teoh, Siew Hong - Volkswirtschaftliche Fakultät, … - 2012
We test whether and how equity overvaluation affects corporate financing decisions using an ex ante misvaluation … measure that filters firm scale and growth prospects from market price. We find that equity issuance and total financing …, the sensitivity of equity issuance and total financing to misvaluation is stronger among firms with potential growth …