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On Relations among Stock Price Behavior and Changes in the Capital Structure of the Firm

Published online by Cambridge University Press:  19 October 2009

A. James Boness ,
Andrew H. Chen  and
Som Jatusipitak
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Extract

There now exists a formidable documentation of the hypothesis that time series of common stock prices follow random walks. Taking these empirical demonstrations as convincing, additional work has largely fallen into two classes: (a) direct theorizing and testing of the exact nature of the random price-generating process; and (b) theorizing and testing of the implications of random walks in common stock price for the values of related securities such as warrants and convertibles.

Type
Research Article
Information
Journal of Financial and Quantitative Analysis , Volume 7 , Issue 4 , September 1972 , pp. 1967 - 1982
Copyright
Copyright © School of Business Administration, University of Washington 1972

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