Market Timing

A. What is the main goal of the paper? What motivates the author(s) to take up this issue?

B. How does the author’s measure of market timing differ from that of Baker and Wurgler (2002)?

C. What argument do the author use for using the alternative measure?

C. Briefly describe the methodology used in the paper.

D. What results do the author(s) report?

E. What is the long-term implication of the author’s finding on the target capital structure?