In the admitted working paper “Capital Structure Persistency and Subsequent Equity Financing: Evidence from Zero Leverage and Levered Firms,” the authors tracked the capital structure evolution in a sample of firms following their Initial Public Offering (IPO). The authors found that firms who persistently maintain a zero-leverage structure signal to the market that they undertake Seasoned Equity Offerings (SEO) for reasons other than mispricing. The researchers also found evidence that all-equity firms signal to the market that they are likely to maintain the all-equity structure, which makes them attractive merger and acquisition targets.
The Midwest Finance Association is a professional association of academics and finance industry professionals dedicated to developing and disseminating information concerning recent advances in financial theory and practice to its members and other interested individuals. Through its annual conference and its highly regarded journal, The Quarterly Journal of Finance, the MFA provides a forum for the interaction of finance academics and practitioners to share scholarly activity and current practice so as to encourage and facilitate the betterment of the profession. This year the conference received 1069 submissions, of which 253 papers were admitted on the program.
https://www.ithaca.edu/intercom/article.php/20201203145917614