Capital Structure Theory: Evidence from European Property Companies' Capital Offerings
研究了欧洲房地产公司宣布股权和债务发行时的股价反应，发现股权发行有负面反应且低税国家反应较轻，债务发行有正面反应，税收、发行规模和经营业绩是重要解释因素。
This study examines the stock price reactions on announcements of both equity and debt offerings by European property companies. The unique setting in which corporate tax rates vary between different countries enables us to test established theories in the field of capital structure. In accordance with theory, we find a negative price reaction on equity offering announcements, which is less severe for low‐tax countries and positive price reactions on the announcements of debt offerings. Besides tax arguments, we also test alternative explanations by analyzing variations in stock reactions based on differences in the relative size of the issue, the pre‐offer leverage, the underlying property types, and operational performance. The results show that corporate taxation, issue size, and operational performance are significant explanatory factors in the negative price reactions.