Net equity financing
✓ aliveNetEquityFinanceFinancing· Accounting data
Sale of common stock (sstk) minus purchase of common stock (prstkc), scaled by average total assets (at) from years t and t-1. Exclude if absolute value of ratio is greater than 1.
IS Sharpe (1972–2005)
0.505
+8.5% p.a.
OOS Sharpe (2006–2024)
0.713
+11.9% p.a.
Sharpe decay
-41.2%
(IS − OOS) / |IS|
IS vol
16.9%
annualized
Cumulative return (last 40 years, monthly)
+3634%1984-012024-12
Publication details
AuthorsBradshaw, Richardson, Sloan
PaperBradshaw, Richardson, Sloan (2006)
JournalJournal of Accounting and Economics
Publication year2006
Original sample1971–2000
IS T-statistic3.82
More Financing anomalies
Net external financing+0.86Share issuance (5 year)+0.77Share issuance (1 year)+0.75Net debt financing+0.70Convertible debt indicator+0.67Composite debt issuance+0.54
See all Financing anomalies →