We explore the relationship between liquidity of a firm’s equity and its capital structure. Firms with more liquid stocks benefit from lower costs of equity issuance. Therefore, it is hypothesized that such firms are likely to have a preference for equity in their capital structure. This...

Purpose This study aims to forecast daily value-at-risk (VaR) for international stock indices by using the conditional extreme value theory (EVT) with the Realized GARCH (RGARCH) model. The predictive ability of this Realized GARCH-EVT (RG-EVT) model is compared with those of the standalone...

Purpose – The purpose of this paper is to utilize a constrained random portfolio-based framework for measuring the skill of a cross-section of Indian mutual fund managers. Specifically, the authors test whether the observed performance implies superior investment skill on the part of mutual...