Net external financing
✓ aliveXFINFinancing· Accounting data
Sale of common stock (sstk) minus dividends (dv) minus purchase of common stock (prstkc) plus long-term debt issuance (dltis) minus long-term debt reductions (dltr). Scaled by total assets (at).
IS Sharpe (1972–2005)
0.783
+13.4% p.a.
OOS Sharpe (2006–2024)
0.863
+14.9% p.a.
Sharpe decay
-10.2%
(IS − OOS) / |IS|
IS vol
17.1%
annualized
Cumulative return (last 40 years, monthly)
+22890%1984-012024-12
Publication details
AuthorsBradshaw, Richardson, Sloan
PaperBradshaw, Richardson, Sloan (2006)
JournalJournal of Accounting and Economics
Publication year2006
Original sample1971–2000
IS T-statistic5.70
More Financing anomalies
Share issuance (5 year)+0.77Share issuance (1 year)+0.75Net equity financing+0.71Net debt financing+0.70Convertible debt indicator+0.67Composite debt issuance+0.54
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