The Corporate Sector as a Net Exporter of Funds: Additional Evidence

  • John B. GuerardJr


Using aggregate data, Schwartz and Aronson (1966) documented the role of the corporate sector in generating more funds than it can profitability use over 40 years from 1924–1964. One of the primary issues behind the corporate sector exporting funds was the controversy of dividends. Schwartz and Aronson noted that aggregate dividends far exceeded net new external financing. In this study, we present evidence for the 1971–2006 period for all stocks covered by the Compustat tapes, some 200,000 firms (approximately 2,300–6,000 firms per year). We substantiate the original Schwartz and Aronson hypothesis of the corporate sector as a net exporter of funds and offer additional evidence as to how the components of the net exporter sector calculations have evolved over time. We address additional questions with regard to debt and equity issuances, repurchases, the relationship of dividends and stock prices, and whether significant sector effects are present.


Abnormal Return Investment Equation External Financing External Finance Corporate Sector 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


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Copyright information

© Martindale Center for the Study of Private Enterprise, Lehigh University 2008

Authors and Affiliations

  • John B. GuerardJr
    • 1
  1. 1.Director of Quantitative ResearchMcKinley Capital ManagementAnchorageUSA

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