Electronic copy available at: http://ssrn.com/abstract=267327 Electronic copy available at: http://ssrn.com/abstract=267327 Market Timing and Capital Structure MALCOLM BAKER and JEFFREY WURGLER * * Baker is from the Harvard University Graduate School of Business Administration. Wurgler is from the New York University Stern School of Business. We thank Arturo Bris, John Campbell, Paul Gompers, Roger Ibbotson, Vojislav Maximovic, Andrew Roper, Geert Rouwenhorst, Geoff Verter, Ralph Walkling, participants of seminars at Columbia, Cornell, Duke, Harvard, INSEAD, MIT, Northwestern, NYU, Rutgers, Stanford, University of Chicago, University of North Carolina at Chapel Hill, University of Notre Dame, the Western Finance Association Conference (2001), Wharton, and Yale, and especially Richard Green, Andrei Shleifer, Jeremy Stein, Ivo Welch, and an anonymous referee for helpful comments. We thank John Graham and Jay Ritter for data and Alok Kumar for research assistance. Baker gratefully acknowledges the financial support of the Division of Research of the Harvard Graduate School of Business Administration.