Eaters of The Dead :: essays papers

Eaters of The Dead â€Å"Eaters of the Dead† by Michael Crichton is a fiction yet with authentic foundation. Through this piece Crichton wants to communicate the lifestyle for the Vikings in the year 922 AD while simultaneously making an engaging story. Utilizing a composition composed by Ibn-Fadlan Crichton sorted out a book loaded up with experience and fervor. Michael Crichton was conceived in Chicago, 1942 and consistently realized he had an ability for composing. He went to Brown University and has since distributed numerous books, for example, â€Å"Jurassic Park†, â€Å"The Rising Sun†, â€Å"Disclosure†, and some more. A few of his books have been made into films, for instance, â€Å"Jurassic Park†, â€Å"The Lost World†, â€Å"Sphere†, â€Å"Congo†, and â€Å"Eaters of the Dead† is coming to theaters this mid year featuring Antonio Banderas. Michael Crichton is additionally the author of the hit TV show â€Å"ER†. Ibn-Fadlan is a refined Arab subject speaking to the ground-breaking Caliph of Baghdad and the entire story line depends on his movements. He is a Muslim and is sent to the Bulgar land to teach the ruler in the Islamic religion, familiarize the lord with Islamic laws, and fabricate a Mosque in the city. Little does Ibn-Fadlan know where his movements will lead him. Wyglif is the current head of the Northmen (at that point) he has become sick and is accepted to get no opportunity of recuperation. When he passes on, not long after getting sick, Buliwyf is made the new pioneer. Buliwyf is a youthful respectable picked to be the Northmens new pioneer once Wyglif bites the dust. He is a brave warrior, tall and solid, and skin, hair, and facial hair of unadulterated white. Herger, one of th e Northmen warriors, likewise became Ibn-Fadlan’s companion. He helped him to interpret the expressions of the Northmen and furthermore helped Ibn-Fadlan become acquainted with their lifestyle and acceptable behavior around the Northmen. â€Å"The Wendols† are characters in the story who, as told by Ibn-Fadlan, don't appear to be completely human. They ride on the rear of a dark pony and have the leader of a bear. They are very wild warriors and are very malicious. They emit a smell so solid it damages to inhale in light of the fact that they devour human fragile living creature and it is consistently on their breath. They accompany the fog, a dull haze that encompasses the land when the Wendols come.

Learn How to Write Essays in Chronological Order

<h1>Learn How to Write Essays in Chronological Order</h1><p>Chronological request recorded as a hard copy an article is a significant factor. To compose an attractive paper, we have to follow this specific rule recorded as a hard copy it.</p><p></p><p>When composing an article, more often than not, understudies go to and fro over their primary concerns. They rehash them without anyone else, or they allude to the examination paper they have just composed. This should be possible by utilizing various pens or on some other way of composing it.</p><p></p><p>However, to improve your primary concerns known to the peruser, you have to utilize the sequential request recorded as a hard copy the paper. Try not to rehash the primary concerns in a steady progression. A decent method to make it simpler to the peruser is to write in a sequential request. Make a rundown of central matters in sequential request and use it as a reason for the following paragraph.</p><p></p><p>For model, when I was doing research paper, I began with a meaning of the term 'authentic setting' and clarified it gradually in the following passage. The following passage will clarify further what recorded setting is.</p><p></p><p>From this section, I would now be able to continue to another section. It tends to be a segment of the past section. So as to make it simpler to the peruser, I can likewise incorporate the meaning of the word 'setting' in the past paragraph.</p><p></p><p>It will at that point become simpler for the peruser to comprehend your paper. There is no compelling reason to allude to past sections. What's more, by and by, with the tips you simply learned, you can compose the entire article in sequential order.</p><p></p><p>However, there are a few people who don't have the foggiest idea about this. They compose sentences that a ppear to fit flawlessly, and it is hard for the peruser to comprehend what is being said.</p><p></p><p>The reason for composing is to be written in a sensible arrangement, and to make it simpler for the peruser to comprehend. So ensure you keep the standard of composing an exposition in a sequential request. Thusly, you will have the option to compose a paper that is composed with style.</p>

Specialists Create Market Efficiency :: essays papers

Experts Create Market Efficiency The NYSE ought not cancel masters. Both the NYSE and NASDAQ, in any case, need to understand that their relative exchanging volumes will keep on decaying as ECN's become increasingly mainstream. The requirement for optional and third markets will be decreased, anyway they despite everything offer liquidity, so in some shape or structure they will consistently be trendy to specific sorts of financial specialists. The present framework set up inside NYSE is exceptionally old and obsolete. For any single exchange, various players must be included. Initial, a speculator puts in a purchase or offer request to a dealer. The business firm at that point contacts its bonus dealer, who is quite the floor, to perfect the request. In this unbending and tedious framework, the pro has a significant impact in any exchange. Any purchasing or selling in a specific stock happens at the experts post. A PC screen shows all offer and approach costs for a stock notwithstanding the quantity of offers they are happy to purchase or sell at the given offer ask cost. Essentially, Specialists execute the exchanges of different merchants, yet they can likewise purchase or sell shares for their own portfolios. At the point when no other dealer can be found to take the opposite finish of an exchange, the pro should take the finish of the exchange where nobody else can be found to do as such. This is done to make liquidity , and is perhaps the greatest advantage to this framework. Additionally, this kind of exchanging makes a closeout showcase, where purchasers and merchants are as one of every one area, and the best purchase or sell orders win exchanges. They additionally go about as a vendor when they need to execute an exchange when there isn't a purchaser or vender accessible utilizing their own stock. Once more, this is intended to encourage liquidity. NYSE stocks, as of not long ago, couldn't exchange certain NYSE stocks outside of a conventional stock trade, anyway the NYSE has since abrogated this standard. This has made a little exchanging volume of NYSE stocks over ECN's. The present framework on NASDAQ and most other OTC's fuses vendors, who offer and ask costs to agents who execute exchanges dependent on a posting of the present statements from sellers. In spite of the fact that this is a fluid market, vendors commonly take a spread from the offer/approach cost in return for the hazard that they bring about for holding the security.

Dachauâ€The First Nazi Concentration Camp

Dachau-The First Nazi Concentration Camp Auschwitz may be the most renowned camp in the Nazi arrangement of fear, yet it was not the first. The primary death camp was Dachau, built up on March 20, 1933, in the southern German town of a similar name (10 miles northwest of Munich.) Despite the fact that Dachau was at first settled to hold political detainees of the Third Reich, just a minority of whom were Jews, Dachau before long developed to hold an enormous and differing populace of individuals focused by the Nazis. Under the oversight of Nazi Theodor Eicke, Dachau turned into a model death camp, a spot where SS monitors and other camp authorities went to prepare. Building the Camp The primary structures in the Dachau inhumane imprisonment complex comprised of the leftovers of an old World War I weapons plant that was in the northeastern bit of the town. These structures, with a limit of around 5,000 detainees, filled in as the principle camp structures until 1937, when detainees had to grow the camp and wreck the first structures. The â€Å"new† camp, finished in mid-1938, was made out of 32 military quarters and was intended to hold 6,000 detainees. The camp populace, in any case, was typically horribly over that number. Zapped wall were introduced and seven watchtowers were put around the camp. At the passageway of Dachau was put a door beat with the scandalous expression, Arbeit Macht Frei (Work Sets You Free.†) Since this was an inhumane imprisonment and not a concentration camp, there were no gas chambers introduced at Dachau until 1942, when one was manufactured however not utilized. First Prisoners The principal detainees showed up in Dachau on March 22, 1933, two days after the acting Munich Chief of Police and Reichsfã ¼hrer SS Heinrich Himmler declared the camp’s creation. A significant number of the underlying detainees were Social Democrats and German Communists, the last gathering having been accused for the February 27 fire at the German parliament constructing, the Reichstag. In numerous occasions, their detainment was an aftereffect of the crisis order that Adolf Hitler proposed and President Paul Von Hindenberg affirmed on February 28, 1933. The Decree for the Protection of the People and the State (usually called the Reichstag Fire Decree) suspended the social equality of German regular folks and precluded the press from distributing hostile to government materials. Violators of the Reichstag Fire Decree were every now and again detained in Dachau in the months and years after it was placed into impact. Before the finish of the main year, there had been 4,800 enrolled detainees in Dachau. Notwithstanding the Social Democrats and Communists, the camp likewise held exchange unionists and other people who had questioned the Nazis ascend to control. Albeit long haul detainment and coming about death were normal, a large number of the early detainees (before 1938) were discharged in the wake of carrying out their punishments and were announced restored. Camp Leadership The primary commandant of Dachau was SS official Hilmar Wckerle. He was supplanted in June 1933 in the wake of being accused of homicide in the demise of a detainee. In spite of the fact that Wckerle’s inevitable conviction was toppled by Hitler, who proclaimed inhumane imprisonments out of the domain of the law, Himmler needed to acquire new administration for the camp. Dachau’s second commandant, Theodor Eicke, rushed to build up a lot of guidelines for every day activities in Dachau that would before long become the model for other death camps. Detainees in the camp were held to an every day standard and any apparent deviation brought about brutal beatings and in some cases passing. Conversation of political perspectives was carefully disallowed and infringement of this strategy brought about execution. The individuals who endeavored to escape were killed too. Eicke’s work in making these guidelines, just as his impact on the physical structure of the camp, prompted an advancement in 1934 to SS-Gruppenfã ¼hrer and Chief Inspector of the Concentration Camp System. He would proceed to regulate the improvement of the immense inhumane imprisonment framework in Germany and demonstrated different camps on his work at Dachau. Eicke was supplanted as commandant by Alexander Reiner. Order of Dachau changed hands nine additional occasions before the camp was freed. Preparing SS Guards As Eicke set up and executed an exhaustive arrangement of guidelines to run Dachau, Nazi bosses started to name Dachau as the â€Å"model focus camp.† Officials before long sent SS men to prepare under Eicke. An assortment of SS officials prepared with Eicke, most remarkably the future commandant of the Auschwitz camp framework, Rudolf Hã ¶ss. Dachau additionally filled in as a preparation ground for other camp staff. Night of the Long Knives On June 30, 1934, Hitler concluded the time had come to free the Nazi Party of the individuals who were undermining his ascent to control. In an occasion that got known as the Night of the Long Knives, Hitler utilized the developing SS to take out key individuals from the SA (known as the â€Å"Storm Troopers†) and others he saw as being risky to his developing impact. A few hundred men were detained or slaughtered, with the last being the more typical destiny. With the SA formally wiped out as a danger, the SS started to develop exponentially. Eicke profited significantly from this, as the SS was presently authoritatively accountable for the whole death camp framework. Nuremberg Race Laws In September 1935, the Nuremberg Race Laws were affirmed by authorities at the yearly Nazi Party Rally. Accordingly, a slight increment in the quantity of Jewish detainees at Dachau happened when â€Å"offenders† were condemned to internment in inhumane imprisonments for disregarding these laws. After some time, the Nuremberg Race Laws were additionally applied to Roma Sinti (vagabond gatherings) and prompted their internment in death camps, including Dachau. Kristallnacht During the evening of November 9-10, 1938, the Nazis authorized a composed slaughter against the Jewish populaces in Germany and added Austria. Jewish homes, organizations, and places of worship were vandalized and consumed. More than 30,000 Jewish men were captured and around 10,000 of those men were then interned in Dachau. This occasion, called Kristallnacht (Night of Broken Glass), denoted the defining moment of expanded Jewish detainment in Dachau. Constrained Labor In the early long periods of Dachau, the greater part of the detainees had to perform work identified with the extension of the camp and the encompassing territory. Little modern errands were likewise appointed to make items utilized in the area. Be that as it may, after World War II broke out, a great part of the work exertion was changed to make items to promote the German war exertion. By mid-1944, sub-camps started to jump up around Dachau so as to expand war creation. Altogether, more than 30 sub-camps, which worked in excess of 30,000 detainees, were made as satellites of the Dachau fundamental camp. Clinical Experiments All through the Holocaust, a few fixation and concentration camps performed constrained clinical examinations on their detainees. Dachau was no exemption. The clinical investigations directed at Dachau were apparently planned for improving military endurance rates and bettering clinical innovation for German regular people. These investigations were generally astoundingly difficult and unneeded. For instance, Nazi Dr. Sigmund Rascher exposed a few detainees to high elevation tests utilizing pressure chambers, while he constrained others to experience freezing tests with the goal that their responses to hypothermia could be observed. Still, different detainees had to drink saltwater to decide its drinkability. A significant number of these detainees kicked the bucket from the tests. Nazi Dr. Claus Schilling would have liked to make an immunization for jungle fever and infused over a thousand detainees with the malady. Different detainees at Dachau were probed with tuberculosis. Passing Marches and Liberation Dachau stayed in activity for a long time almost the whole length of the Third Reich. Notwithstanding its initial detainees, the camp extended to hold Jews, Roma and Sinti, gay people, Jehovah’s Witnesses, and detainees of war (counting a few Americans.) Three days before freedom, 7,000 detainees, for the most part Jews, had to leave Dachau on a constrained passing walk that brought about the demise of a significant number of the detainees. On April 29, 1945, Dachau was freed by the United States seventh Army Infantry Unit. At the hour of freedom, there were roughly 27,400 detainees who stayed alive in the principle camp. Altogether, more than 188,000 detainees had gone through Dachau and its sub-camps. An expected 50,000 of those detainees kicked the bucket while detained in Dachau.

What Is So Fascinating About Acpe Essay Samples?

<h1> What Is So Fascinating About Acpe Essay Samples? </h1> <h2> What You Should Do About Acpe Essay Samples Starting in the Next Ten Minutes</h2> <p>Thus, it's critical to care for the telephone cautiously. Detriments of picking an ease article administration Quality If you're settling on less expensive assistance, recall that it probably won't be sufficient. Experts of utilizing a minimal effort exposition administration Availability Everywhere on the web, you can get one or other paper administrations. Rundown Hiring an ease exposition administration might be correct alternative for understudies one after another crunch. </p> <p>The more data you may accumulate about the subject, the more ready you'll be for composing your paper. As any guide on how best to form a powerful article will educate you, your exposition must be sorted out in passages with a consistent movement from 1 section to the following. Weave in your viewpoint to turn your paper one of a kind. 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You can promptly dis cover exposition composing administrations which could compose at you at modest costs. Making the fruition of private account coursework a necessity for graduation would ensure that youngsters today are in any event mindful of the basics of keeping a monetary security. Despite the fact that individuals accept instruction is a right and will make society, generally speaking, a superior spot for everyone, others feel there's no genuine technique to give a free advanced degree as schools would at present should be subsidized (likely through expense dollars).</p> <p>A influential discourse is given the point of convincing the crowd to feel a specific way, to make a particular move, or to help a specific view or cause. In the occasion the inquiry is an expository one, there's no compelling reason to flexibly the appropriate response in your content. An essential point is the objective of the human body section. While endeavoring to realize how to form an influential paper bit by bit, understudies disregard another critical action. </p> <p>Such a minute ago looking never gets vain, which causes incomplete exposition assignments and finishes in a horrible score. In such a situation, an understudy is expected to pick an appropriate subject to expound on. Which is actually why we here offer you some convincing exposition tests that may help you with your own. Remember that any pugnacious exposition test you'll find on the web will require a full revamping so as to forestall written falsification. </p> <h2>The Most Popular Acpe Essay Samples </h2> <p>Persuasive composing can be testing, especially when you're made to look with a nearby disapproved of crowd. Different objectives incorporate the showing of astounding exploration capacities and profound comprehension of the subject. Building up a title is among the hardest things that understudy may manage. </p> <p>The achievement of the whole paper legitimately relies on how great you present the supporting realities. Along these lines utilizing a specialist for doing your expositions could be the best possible decision. Before recording the realities and models that you're probably going to handle, you should be all around educated, most importantly, about your point. Having phenomenal research capacities and choosing an incredible point is fundamental. </p> <p>Writing an exposition is a crucial job in academe life. Perusers ought to have the option to adjust the viewpoint of the creator and see from their eyes on where the person in question coming from. </p> <p>Just conform to the rules expressed above, and you will be well headed to composing a not too bad powerful article. There are no relentless guidelines that you need to cling to as you compose. Something else you should consider before composing is your essential point. The central component which delivers an enticing paper in English stand apart from the rest of assignments is the utilization of thinking. </p> <p>If your point is to pass the GED, at that point you need to find out about test-taking methodologies. In about every secondary school, your ability of composing this sort of article will be assessed in class. </p> <p>Trying to convince your instructor might be very debilitating. As a rule, understudies are mentioned to form assignments which take between 30 minutes and a total hour. Understudies and educators can purchase adjusted lunch and beverages beside liquor, that lets them feel pleasant and concentrate much better. Secondary school, school, and now and then even college understudies from all around the globe are composing enticing expositions. </p>

Biblical Names In Toni Morrisons Song Of Solomon

People choose names for a reason, whether it is so that the child takes on a certain personality, based on who they are named after, or so that he or she may carry on the name of a beloved family member. Many names that are popular today are names from the Bible, since most of the biblical characters possess characteristics that parents would want their child to have. Names like Noah, Jacob, David, and Miriam, are names currently in the top 1000 child names in the world, and they are all biblical names. Names from the Bible are also found in many works of literature, like Toni Morrison’s Song of Solomon, a coming of age story about a young man during the mid twentieth century. The reader is introduced to multiple characters with biblical†¦show more content†¦Both women sacrificed something valuable, Reba her diamond ring and Rebecca her family relationships, so that their children would be happy. The role of Reba in Song of Solomon is that of a motherly figure, always putting her children first and not worrying about her own needs. This description aligns well with biblical Rebecca, who sacrifices her relationship with part of her family in order to please her son, Jacob. Reba is a kinder and more selfless version of the Bible’s version of Rebecca. Reba’s aunt, Ruth Foster, has a name that is also associated with a character in the Bible, also named Ruth. In the Bible, after her husband died, Ruth faithfully stays with her mother-in-law, refusing to leave. One of Ruth’s most notable quotes from the Bible is as follows: â€Å"Do not press me to leave you or to turn back from following you! Where you go, I will go; Where you lodge, I will lodge; your people shall be my people, and your God my God. Where you die, I will die—there will I be buried. May the Lord do thus and so to me, and more as well, if even death parts me from you!† (Ruth 1:16-17). In this quote, the reader can see that Ruth is willing to stay by her mother-in-law’s side no matter what, even claiming that she would even die with her. Naomi, her mother-in-law, is a constant reminder of Ruth’s husband, and she refuses to leave her because Naomi is the only reminder she has of her late husband. In Song of Solomon, afterShow MoreRelated Essay on Spirituality in Song of Solomon894 Words   |  4 PagesInclusive Spirituality in Song of Solomon    When slaves were brought to America they were taken from all they had known and forced to live in a land of dark irony that, while promising life, liberty, and the pursuit of happiness, provided them with only misery. In a situation such as the one in which the slaves found themselves, many people would rely on their religion to help them survive. But would slaves be able to find spiritual comfort within the parameters of a religion that had been passedRead More Biblical Illusions in Toni Morrisons Song of Solomon Essay example673 Words   |  3 PagesBiblical Illusions in Toni Morrisons Song of Solomon Song of Solomon, by Toni Morrison, is about a man named Macon Dead. Throughout this novel, however, he is known by all except his father as Milkman because his mother breastfed him until he was in his teens. The novel centers on Milkmans attempt to find himself. His family is a wealthy black family living in a poor black neighborhood, where Milkmans father prohibits Milkman from interacting with most of them, including his aunt. HoweverRead MoreFaith, Belief and Human Experience in Song of Solomon by Toni Morrison 1756 Words   |  8 Pagesanswered was: What role does myth plays in Song of Solomon? This particular question had posed the most important and significant part of the novel. Was really myth or the truth that had helped the novel to progress to in its ending? The answer for these questions will be answered as this paper moves on with its pages focusing on the myths and events that had transpired in the whole novel. Song of Solomon was a novel written by Toni Morrison that is probably biblical in its aspects. It was very much alikeRead MoreEssay on Themes in Song Of Solomon2113 Words   |  9 PagesToni Morrison is one of the most talented and successful African-American authors of our time. Famous for works such as The Bluest Eye, Sula, and Beloved, Morrison has cultivated large audiences of all ethnicities and social classes with her creative style of writing. It is not Morrison’s talent of creating new stories that attracts her fans. In contrast, it is her talent of revising and modernizing traditional Biblical and mythological stories that have been present in literature for centuries.Read MoreSong of Solomon - Whats in a Name? Essay909 Words   |  4 PagesToni Morrisons award-winning novel Song of Solomon is full of very interesting, deep symbolism. Macon Dead III, nicknamed Milkman, is a very symbolic character throughout the novel. His character is not only symbolic, for so is h is name. Also, Milkmans paternal aunt, Pilate, has an extremely significannot and symbolic role in the novel. To her father, she represents the child who killed her own mother and took away her fathers wife. Seeing that Pontius Pilate sentenced Jesus to death, the nameRead MoreAnalysis Of Toni Morrison s Song Of Solomon1412 Words   |  6 PagesIn Toni Morrison’s award-winning novel â€Å"Song of Solomon,† she fills the novel with deep symbolism. Macon Dead III, nicknamed â€Å"Milkman,† is a symbolic character throughout the novel. Not only is he as a character symbolic, but his name is as well. Milkman’s aunt, Pilate, has a significant and symbolic role in the novel. To her father, she represents the child who killed her own mother and took away his wife. In the Bible, PontiusRead MoreAnalysis Of Toni Morrison s Song Of Solomon 1213 Words   |  5 Pages Song of Solomon Producing the plot with a vivid image and motive allowed Toni Morrison to incorporate numerous literary works to enhance the allusions in the story. These specific allusions gave readers a more accurate understanding of certain aspects of the book. As well as this, readers are capable of searching beyond just the surface of what the words say. The common use of biblical references and myths, as well as other notations, provideRead More A Comparison of Christian Symbols in Song of Solomon, Sula, and Beloved2397 Words   |  10 PagesAlthough religion does not exist as a central theme in Toni Morrison’s work, it does set premise for a richly intertwined web of symbolism. Morrison’s novels focus on the lives of characters acting in the present day or recent past. For African Americans, events of the past are a crucial facet of culture as they seek to remember their history, the most influential of these events reaching far back into the years of slavery. Historians argue that for incoming slaves, Christianity offered a religiousRead MoreSong Of Solomon Character Analysis1415 Words   |  6 Pages Song of Solomon Topic #5 LAP Abid Ahmad Abid Ahmad 1 The names given to the characters in a book are in many cases the poetic insight to their role and their traits. In this manner, a character’s name can sometimes tell the reader more about them than any specific sentence in the book. This is very much the case with Toni Morrison’s Song of Solomon. The characters in the book have names that directly correlate with their role and individual traits. This is the caseRead More American Dream in Song of Solomon, Narrative Frederick Douglass, Life of a Slave Girl, and Push1924 Words   |  8 PagesAmerican Dream in Song of Solomon, Narrative of Frederick Douglass, Incidents in the Life of a Slave Girl, and Push   Ã‚   In an era where knowledge is power, the emphasis on literacy in African American texts is undeniable. Beginning with the first African American literary works, the slave narratives, through the canons more recent successes such as Toni Morrisons Song of Solomon and Sapphires Push, the topic of literacy is almost inextricably connected to freedom and power. A closer investigation

Market Timing and Capital Structure for Baker and Wurgler Free Essays

It is well known that firms are more likely to issue equity when their market values are high, relative to book and past market values, and to repurchase equity when their market values are low. We document that the resulting effects on capital structure are very persistent. As a consequence, current capital structure is strongly related to historical market values. We will write a custom essay sample on Market Timing and Capital Structure for Baker and Wurgler or any similar topic only for you Order Now The results suggest the theory that capital structure is the cumulative outcome of past attempts to time the equity market. Introduction â€Å"Equity market timing† refers to the practice of issuing shares at high prices and repurchasing shares at low prices. Equity market timing appears to be an important aspect of real corporate financial policy. In this paper, BW ask how equity market timing effects capital structure and whether it has a short-run or long-run impact. The variation in market-to-book ratio is a proxy for manager’s perceptions of misevaluation. The main finding is that low leverage firms are those that raised funds when their market valuations were high (measured by the book-to-market ratio), while high leverage firms are those that raised funds when their market valuations were low. The influence of past market valuations in capital structure is economically significant and statistically robust. The influence of past market valuations on capital structure is also quite persistent, this means that they have a long-run impact. The tradeoff theory predicts that temporary fluctuations in the market-to-book ratio or any other variable should have temporary effects. The evidence however indicates long-term effects as well. The standard pecking-order theory implies that periods of high investment will push leverage higher toward a debt capacity, not lower as the results in this paper suggest. The theory of entrenched managers suggests that managers exploit existing investors ex post by not rebalancing the capital structure with debt, this may be an explanation of the findings in this paper. 1. Capital structure and past market valuations Individual financing decisions depend on market-to-book ratios. Does market-to-book affects capital structure through net equity issues as market timing implies? And does market-to-book has persistent effects that help to explain the cross section of leverage? Data and summary statistics. Table I shows that book leverage decreases sharply following the IPO. Over the next 10 years, it rises slightly, while market value leverage rises more strongly. The book leverage trend is an age effect, not a survival effect. Most notable is the sharp switch to debt finance in the year following in the IPO. Under BW’s definitions for financing activity, the change in assets is equal to the sum of net debt issues, net equity issues, and newly retained earnings. The concurrent increase in equity issues is suggestive of market timing. Determinants of annual changes in leverage BW document the net effect of market-to-book on the annual change in leverage. Then they decompose the change in leverage to examine whether the effects comes through net equity issues, as market timing implies. Three control variables are used that have been found to be correlated to leverage: Asset tangibility, profitability, and firm size. BW regress each component (equity issues, debt issues, and newly retained earnings) of changes in leverage on the market-to-book ratio and other independent variables. This allows them to determine whether market-to-book affects leverage through net equity issues, as market timing implies. The effect of market-to-book on changes in leverage does indeed come through equity issues. Panel C shows that market-to-book is not strongly related to retained earnings, ruling out the possibility that market-to-book affects leverage because it forecasts earnings. The effect of profitability on changes in leverage arises primarily because of retained earnings. Firm size plays an important role at the time of the IPO. Determinants of leverage. If managers do not rebalance to some target leverage ratio, market timing may have persistent effects, and historical valuations will help to explain why leverage ratios differ. The relevant historical variation in market valuations is measured by the â€Å"external finance weighted-average† market-to-book ratio. This variable takes high values for firms that raised external finance when the market-to-book ratio was high and vice-versa. The intuitive motivation for this weighting scheme is that external financing events represent practical opportunities to change leverage. It therefore gives more weight to valuations that prevailed when significant external financing decisions were being made, whether those decisions ultimately went toward debt or equity. This weighted average is better than a set of lagged market-to-book ratios because it picks out, for each firm, precisely which lags (intervals) are likely to be the most relevant. Intuitively the weights correspond to times when capital structure was most likely to be changed. When firms go public, their capital structure reflects a number of factors, including market-to-book, asset tangibility, size, and research and development intensity. As firms age, the cross-section of leverage is more and more explained by past financing opportunities, as determined by the market-to-book ratio, and past opportunities to accumulate retained earnings, as determined by profitability. Historical within-firm variation in market-to-book, not current cross-firm variation, is more important in explaining the cross section of leverage. The results from Table III and IV show that the effect of historical valuations on leverage is large and separate from various effects documented in prior literature. Persistence So far two main results have been documented. First, high market valuations reduce leverage in the short run. Second, historically high market valuations are associated with lower leverage in the cross section. By measuring changes from the leverage prevailing in the year before the IPO, the dependent variable includes the effect of the IPO itself. This is useful because the IPO is a critical financing event known to be connected to market value. Historical market valuations have large and very persistent effects on capital structure. This effect is independent of various control variables. 2. Discussion Tradeoff theory In perfect and efficient markets capital structure is irrelevant. Some of the imperfections that lead to an optimal tradeoff are as follows: Higher taxes on dividends indicate more debt, higher non-debt tax shields indicate less debt, higher costs of financial distress indicate more equity, agency problems can call for more or less debt. The market-to-book ratio can be connected to several elements of the tradeoff theory but it is most commonly attached to costly financial distress. The key testable prediction of the tradeoff theory is that capital structure eventually adjusts to changes in the market-to-book ratio. However, evidence indicated that variation in the market-to-book ratio has a decades-long impact on capital structure. BW’s results make the point that a considerable fraction of cross-sectional variation in leverage has nothing to do with an optimal leverage ratio. Pecking order theory In the pecking order theory there is no optimal capital structure. The static model predicts that managers will follow a pecking-order (internal, debt, equity). The pecking order theory regards the market-to-book ratio as a measure of investment opportunities. Periods of high investment opportunities will tend to push leverage higher toward a debt capacity. However, to the extent that high past market-to-book actually coincides with high past investments, BW’s results suggest that such periods tend to push leverage lower. The dynamic version predicts a relationship between leverage and future investment opportunities. BW’s results control for current market-to-book and show that leverage is much more strongly determined by past values of market-to-book. Managerial entrenchment theory High valuations and good investment opportunities facilitate equity finance, but at the same time allow managers to become entrenched. They may then refuse to raise debt to rebalance in later periods. Market timing theory Capital structure evolves as the cumulative outcome of past attempts to time the equity market. There are two versions of equity market timing. The first is a dynamic form with rational managers and investors and adverse selection costs that vary across firms or across time. Temporary fluctuations in the market-to-book ratio measure variations in adverse selection (information asymmetry). The second version of equity market timing involves irrational investors or managers and time-varying mispricing. If managers try to exploit too-extreme expectations, net equity issues will be positively related to market-to-book. The critical assumption is that markets need not be inefficient, managers may simply believe that they can time the market. 3. Conclusion A variety of evidence suggests that equity market timing is an important aspect of real financial policy. This evidence comes from analyses of actual financing decisions, analyses of long-run returns following equity issues and repurchases, analyses of realized and forecast earnings around equity issues, and surveys of managers. We find that fluctuations in market valuations have large effects on capital structure that persist for at least a decade. The most realistic explanation for the results is that capital structure is largely the cumulative outcome of past attempts to time the equity market. How to cite Market Timing and Capital Structure for Baker and Wurgler, Papers