Browsing by Author "Baker, Malcolm"

Now showing items 1-10 of 10

    • Capital Market-Driven Corporate Finance 

      Baker, Malcolm (Annual Reviews, 2009-12-05)
      Much of empirical corporate finance focuses on sources of the demand for various forms of capital, not the supply. Recently this, has changed. Supply effects of equity and credit markets can arise from a combination of ...

    • Comovement and Predictability Relationships Between Bonds and the Cross-Section of Stocks 

      Baker, Malcolm P.; Wurgler, Jeffrey (2012)
      Government bonds comove more strongly with bond-like stocks: stocks of large, mature, low-volatility, profitable, dividend-paying firms that are neither high growth nor distressed. Variables derived from the yield curve ...

    • Dividends as Reference Points: A Behavioral Signaling Approach 

      Baker, Malcolm P.; Mendel, Brock; Wurgler, Jeffrey (Oxford University Press (OUP), 2016-05-06)
      We outline a dividend signaling model that features investors who are averse to dividend cuts. Managers with strong unobservable cash earnings separate by paying high dividends but retain enough to be likely not to fall ...

    • Do Strict Capital Requirements Raise the Cost of Capital? Bank Regulation, Capital Structure and the Low Risk Anomaly 

      Baker, Malcolm P.; Wurgler, Jeffrey (American Economic Association, 2015)
      Traditional capital structure theory predicts that reducing banks' leverage reduces the risk and cost of equity but does not change the weighted average cost of capital, and thus the rates for borrowers. We confirm that ...

    • The Effect of Dividends on Consumption 

      Nagel, Stefan; Wurgler, Jeffrey.; Baker, Malcolm (Johns Hopkins University Press, 2007)

    • The Effect of Reference Point Prices on Mergers and Acquisitions 

      Baker, Malcolm P.; Pan, Xin; Wurgler, Jeffrey (Elsevier, 2012)
      Prior stock price peaks of targets affect several aspects of merger and acquisition activity. Offer prices are biased toward recent peak prices although they are economically unremarkable. An offer's probability of acceptance ...

    • Global, Local, and Contagious Investor Sentiment 

      Baker, Malcolm P.; Wurgler, Jeffrey; Yuan, Yu (Elsevier, 2015-06-16)
      We construct investor sentiment indices for six major stock markets and decompose them into one global and six local indices. In a validation test, we find that relative sentiment is correlated with the relative prices of ...

    • The Low Beta Anomaly: A Decomposition into Micro and Macro Effects 

      Baker, Malcolm P.; Bradley, Brendan; Taliaferro, Ryan (2013-10-03)
      Low beta stocks have offered a combination of low risk and high returns. We decompose the anomaly into micro and macro components. The micro component comes from the selection of low beta stocks. The macro component comes ...

    • The Pricing and Ownership of U.S. Green Bonds 

      Baker, Malcolm; Bergstresser, Daniel; Serafeim, Georgios; Wurgler, Jeffrey (Annual Reviews, 2022-11)
      We review the pricing and ownership of green bonds, whose proceeds are used for environmentally focused purposes. After presenting an overview of the literature on green securities and green bonds in particular, we summarize ...

    • Under New Management: Equity Issues and the Attribution of Past Returns 

      Baker, Malcolm P.; Xuan, Yuhai (Elsevier, 2016-06-17)
      There is a strong link between measures of stock market performance, such as changes in Tobin's Q or past stock returns, and equity issues. Typically, this performance is thought to be a characteristic of the firm, not the ...