Net debt financing

✓ alive

NetDebtFinanceFinancing· Accounting data

Long-term debt issuance (dltis) minus long-term debt reduction (dltr) minus current debt changes (dlcch), scaled by average total assets (at) in years t-1 and t. Replace missing values of dlcch with 0. Exclude if ratio is greater than 1.

IS Sharpe (1972–2005)

1.497

+9.2% p.a.

OOS Sharpe (2006–2024)

0.701

+4.7% p.a.

Sharpe decay

+53.2%

(IS − OOS) / |IS|

IS vol

6.1%

annualized

Cumulative return (last 40 years, monthly)

+1856%

1984-012024-12

Publication details

AuthorsBradshaw, Richardson, Sloan

PaperBradshaw, Richardson, Sloan (2006)

JournalJournal of Accounting and Economics

Publication year2006

Original sample1971–2000

IS T-statistic6.91

More Financing anomalies

Net external financing+0.86 Share issuance (5 year)+0.77 Share issuance (1 year)+0.75 Net equity financing+0.71 Convertible debt indicator+0.67 Composite debt issuance+0.54

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